Cash (notes and coins)

The banking system

The banking system comprises the majority of lending to the non-financial private sector in New Zealand. Direct capital market funding (issuance of corporate bonds) and non-bank lending institutions (NBLIs) together account for only 6 percent of non-financial private sector borrowing.

Non-bank lending institutions

Non-bank lending institutions (NBLIs) include non-bank deposit-taking institutions (NBDTs) and non-deposit-taking finance companies. The Reserve Bank of New Zealand regulates NBDTs, but does not regulate or supervise non-deposit-taking finance companies. NBLIs account for just over 3 percent of intermediated credit, mainly focusing on the business and consumer sectors (figure 8). 

Insurance

The New Zealand private insurance sector is small by international standards. There are around 86 licensed insurers currently operating in New Zealand, accounting for approximately $32 billion in assets or 13 percent of GDP.^1 2