The Reserve Bank of New Zealand has announced that all deposit takers licensed under the Deposit Takers Act 2023 (DTA) will be permitted to refer to themselves as banks.
The decision follows the RBNZ’s 2025 public consultation on the use of the term “bank” under the new framework.
Under the Banking (Prudential Supervision) Act 1989 (BPSA), the terms “bank”, “banker” and “banking” are restricted in order to ensure the public can clearly identify which institutions are subject to prudential regulation.
When the Deposit Takers Act 2023 (DTA) comes fully into force on 1 December 2028, all licensed deposit takers, including those currently regulated as non-bank deposit takers (NBDTs), will be permitted to use the said restricted terms.
Overseas banks that do not maintain a physical presence in New Zealand will also continue to be allowed to use these restricted words, in line with authorisations set out under the DTA.
This change supports improvements in the competitive landscape and a consistent approach across deposit takers, which was largely supported in consultation feedback,” Acting Assistant Governor Financial Stability Angus McGregor stated.
Alongside the introduction of the Depositor Compensation Scheme, the Deposit Takers Act 2023 (DTA) establishes a strengthened regulatory framework, including new supervision powers and mechanisms for managing and resolving deposit takers in financial distress.
The DTA also enhances the Reserve Bank of New Zealand’s ability to monitor the stability of deposit takers and intervene where a firm’s financial position or business practices may threaten depositors’ funds or pose risks to the wider financial system.