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Reserve Bank of New Zealand Act 2021

Financial and accountability matters - Funding agreements and annual dividend - Annual dividend

213: Determination of annual dividend

You could also call this:

"How the Reserve Bank decides its yearly payment to the Government"

Illustration for Reserve Bank of New Zealand Act 2021

The Reserve Bank of New Zealand must tell the Minister how much money it thinks it should pay to the Crown each year. You can think of this as a yearly dividend. The Bank makes this decision based on its financial risk management plan. The Minister then decides how much the Bank actually pays to the Crown. The Minister considers what the Bank recommends and the financial risk management plan. The Minister also thinks about other important matters. You can find more information about this by looking at the Reserve Bank of New Zealand Act from 1989.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS287209.

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Part 5Financial and accountability matters
Funding agreements and annual dividend: Annual dividend

213Determination of annual dividend

  1. The Bank must, as soon as practicable after the end of each financial year, recommend to the Minister the amount appropriately payable by the Bank to the Crown as an annual dividend for the financial year.

  2. The Bank must determine the amount it recommends to the Minister in accordance with the principles set out in the statement of financial risk management.

  3. The Minister must determine the amount that the Bank must pay to the Crown as an annual dividend for the financial year having regard to—

  4. the recommendation of the Bank; and
    1. the principles set out in the statement of financial risk management; and
      1. any other relevant matters.

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