Cash (notes and coins)

Financial market infrastructure

Financial market infrastructures (FMIs) provide channels through which payments, securities, derivatives or other financial transactions are cleared, settled or recorded. Well-functioning and efficient FMIs play a critical role in promoting financial stability and economic growth. FMIs can strengthen the markets they serve; if not managed properly, they can pose significant risks to the financial system and be a potential conduit or source of contagion. A stable financial system therefore depends on careful management and mitigation of key risks in the FMIs.

¹ This note is intended to provide a high level overview of the structure of the New Zealand financial system, with a key focus on the banking sector. It does not include an extensive discussion of New Zealand financial markets.

² Non-bank deposit takers include building societies, credit unions and finance companies that take deposits from the public.

³ Total assets are not yet available on a consistent basis for the insurance sector. The value is derived from individual insurer financial statements up to June 2020. Asset values may be accounted for differently across insurers.