9 Institutions

This section looks at the financial structure in New Zealand. It examines the roles of the Resreve Bank of New Zealand as well as the Trading Banks.

9.1 The Reserve Bank
The central bank in New Zealand is called the Reserve Bank. The functions of the Reserve Bank are as follows...

9.2 Trading Banks
A bank's business is to trade money. This involves the bank in keeping deposits safe and in operating various systems to facilitate the transfer of funds to borrowers...

9.3 Finance Companies
A finance company operates by issuing a prospectus inviting people to deposit money with it. Deposits are for a fixed period of time and interest rates offered, because of the greater risk to the lender, are usually quite high...