30 September 2025 – The Reserve Bank of New Zealand – Te Pūtea Matua has opened consultation on the use of the word 'bank' under the Deposit Takers Act 2023 (DTA).  

The consultation paper proposes expanding the use of the word 'bank' to all deposit takers that become licensed under the DTA. This could include entities that are currently licensed as non-bank deposit takers (NBDTs), explains Acting Assistant Governor Financial Stability, Angus McGregor.  

“Reviewing this policy creates an opportunity to support improvements in the competitive landscape,” Mr McGregor says.

Restrictions on the use of the words 'bank', 'banker' and 'banking' help the public to identify which entities are subject to prudential regulation. The consultation paper seeks feedback on the use of restricted words in entities' name or title once the DTA is fully in force.

“We have carefully considered the merits of expanding the use of the word 'bank', consistent with our financial stability objective,” Mr McGregor says.

Any changes will take effect when the DTA fully commences, expected on 1 December 2028. The DTA will replace existing prudential legislation with a single regulatory regime for all deposit takers.  
 

Use of the word 'bank' under the DTA
 

Consultation also opens on regulatory perimeter

A companion paper has also been published seeking feedback on proposed regulations relating to the regulatory perimeter, and other matters important for the smooth implementation of the DTA.  

This consultation aims to further clarify and set the boundary of the regulatory perimeter before licensing of deposit takers commences under the DTA. The prudential regulatory perimeter defines the types of entities that are subject to the licensing process and ongoing prudential supervision under the DTA. The paper considers whether certain types of fintechs should be within the prudential perimeter.  

The DTA licensing process is currently expected to begin on 1 June 2027.

“We encourage submitters to read and consider both consultation papers side by side, and we welcome submitters to provide feedback on one or both documents,” Mr McGregor says.

Second tranche of Deposit Takers Regulations under the DTA

https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=b8baa00f1a&e=f3c68946f8
 

Deposit Takers Act 2023

The DTA modernises New Zealand's regulatory framework for deposit takers. It aims to help ensure the safety and soundness of deposit takers and support a stable financial system that New Zealanders can trust. 

Deposit Takers Act – Reserve Bank of New Zealand – Te Pūtea Matua  

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New Zealand leaders favour small incremental changes in response to escalating climate impacts rather than the bold changes needed to make a real difference, according to research by University of Auckland academic Dr Sasha Maher and Professor Brad Jackson (University of Waikato). 

The study finds current leadership practices insufficient, encouraging small, fragmented steps that weaken climate policy.

Maher and Jackson say responsibility-focused leadership that builds relationships and collective action, is needed.

“New Zealand is in the process of designing a national adaptation framework, and questions regarding leadership are being actively debated,” says Maher.

“Our paper examines leadership responses to climate change, particularly climate adaptation. We explore whether leadership in this area is enabling transformative adaptation, or whether it’s just reaffirming the incrementalist, status quo approach.” 

Adaptation, the process of adjusting to the effects of climate change, aims to mitigate risks and protect communities. However, the paper, published in the journal Leadership, suggests that the country’s current approach could exacerbate inequities and perpetuate long-term risks.

Interviews with stakeholders, and an analysis of public documents from 2021 to 2024, found that current climate adaptation practices fall short, favouring piecemeal responses.

“Although we found evidence that key stakeholders, from government and non-government groups, agreed on the purpose of adaptation leadership, there was considerable divergence about who adaptation leadership should benefit,” says Maher. “Also concerning was the avoidance of any particular group to take an explicit responsible leadership position.”

Under the current government, a major reason for adaptation is to minimise fiscal costs, says Maher. This was also a concern for the previous government, but it sat alongside other considerations, including equity and justice, particularly for Māori and vulnerable communities.

Now, she says, political narratives take a much stronger pro-market approach, signalling that climate adaptation leadership should be devolved to individual homeowners and the market.
“This has encouraged actions such as the construction of personal sea walls; it has also provided the insurance sector with a governance role to direct behaviour via pricing risk.”

By shifting responsibility onto individual homeowners and insurers, climate leadership has narrowed to protecting property rather than addressing inequities or broader environmental impacts, say the researchers.

“New Zealand’s emerging form of adaptation leadership leans towards incrementalism, cutting off recognition of our collective ties and obligation to others,” says Maher.

“Central government should place equity and relationships at the centre of adaptation, ensuring that responses to floods, storms, and rising seas are not only about protecting property, but about strengthening and safeguarding vulnerable communities.”

The study began following severe floods in the West Coast, Buller, Tasman and Marlborough regions in 2021. These flood events raised questions about adaptation costs, whether insurers would withdraw from high-risk areas, and whether some communities might need to relocate permanently.
 
Maher and Jackson analysed documents including parliamentary reports, policy briefs, submissions, ministerial advice, annual reports, and media articles. Sources included the Ministry for the Environment, Treasury, MBIE, the Reserve Bank, the Climate Change Commission, insurers, banks, planners, the property sector, Forest and Bird, the Environmental Defence Society, and news outlets.
 
They also interviewed experts and stakeholders, asking them what leadership should look like in a future of more frequent events, such as floods and storms, and who they thought should take responsibility.
 
In light of their findings, the researchers say climate adaptation leadership should be responsibility-focused, led by central government and put equity and community first.

Source: ASB

ASB’s latest Economic Forecast Update signals a cautiously optimistic outlook for New Zealand, as the country navigates a steady – if uneven – recovery from the past few years’ economic challenges. While the June quarter saw a sharp contraction, recent data point to stabilising conditions and the early signs of a turnaround.

The latest ASB Quarterly Economic Forecast report, released today, highlights that while the recovery is taking longer than hoped, resilient export performance and improving consumer spending are providing a strong foundation for cautious optimism. The housing and labour markets continue to face headwinds, but lower interest rates and easing inflation are expected to support a gradual lift in activity over the coming year.

“The road to recovery is proving bumpy, but there are encouraging signs that New Zealand is finding its footing,” says Chief Economist Nick Tuffley. “While the June quarter took a hit, we’re seeing the seeds of a domestically driven recovery, with lower interest rates and resilient export performance providing a foundation for growth.”

Economic Outlook

ASB expects the Reserve Bank to deliver a 50-basis point cut to the Official Cash Rate (OCR) in October, with a further 25bp cut likely in November – potentially bringing the OCR down to 2.25% before Christmas. This is expected to provide relief for mortgage holders and support a gradual recovery in house prices.

“The economy feels like it needs a bit of a circuit-breaker to overcome uncertainty and create courage for households to spend and businesses to invest,” says Nick. “The onus is now on the Reserve Bank to work to overcome the effects of its post-COVID tightening cycle.

“However, a structurally higher cost environment, a lacklustre wealth effect from a sluggish housing market, and a lower spending propensity given the erosion of savings buffers make it harder to convince us that this will be a ‘rockstar’ recovery – perhaps more indie pop/soft rock star,” says Nick.

Sector Highlights 

• Primary exports: Dairy, beef, and kiwifruit continue to perform strongly, supporting rural balance sheets and helping buffer the wider economy. 
• Consumer spending: Volumes are recovering, especially for durable goods, as lower mortgage rates begin to flow through household budgets. 
• Housing market: Demand is picking up, but excess supply and cautious buyers mean price growth remains modest. 
• Labour market: Unemployment is at a five-year high, with wage growth subdued and cost pressures easing for households. 

Looking ahead

New Zealand’s path to recovery is likely to remain bumpy, with progress shaped by ongoing changes in global trade, domestic demand, and the housing and labour markets. While stabilisation in key sectors and the prospect of lower interest rates offer reasons for cautious optimism, challenges and economic ‘potholes’ are no doubt expected along the way.

The coming year will be crucial in determining whether these early signs of improvement can develop into sustained growth and renewed confidence for households and businesses as the country continues to navigate the speed bumps of recovery.

The latest ASB Quarterly Economic Forecast, along with other recent ASB reports covering a range of commentary, can be accessed at the ASB Economic Insights page: https://www.asb.co.nz/documents/economic-insights.html