Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


New Bond Lending Facility

14 July 2005

New Bond Lending Facility

The Reserve Bank of New Zealand today announced that, as from 18 July 2005, it will operate a bond lending facility.

By providing liquidity to the government securities market through this facility, it is expected that the Bank will be able to alleviate the occasional pressure that arises in the New Zealand inter-bank payments and settlement system. The decision to offer this facility reflects the Bank's statutory objective to promote the soundness and efficiency of the financial system.

Over recent months the Bank has observed growing pressure on the collateral that is available to the banking system (i.e., government securities) for settlement purposes. This pressure reflects a combination of a relatively static volume of government securities and rising demand for them (in part for prudential and settlement purposes). The May 2005 Financial Stability Report highlighted that the Bank was considering ways to address this issue.

The bond lending facility will be available on a daily basis to counterparties who have signed an Inter-day Master Repurchase Agreement. Securities for the facility will be sourced from the Bank's New Zealand government bond portfolio. Bonds will be available for borrowing from the Bank at a margin that will be set so as to ensure that, in normal circumstances, market participants will trade amongst themselves.

For more information on the operational details, please refer to the latest copy of the Bank's Operating Rules and Guidelines, which can be found at


© Scoop Media

Business Headlines | Sci-Tech Headlines


I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>


Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news