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Reserve Bank of New Zealand Act 2021

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

212: Expenditure where there is no current funding agreement

You could also call this:

"What happens to Bank spending when there's no funding agreement"

Illustration for Reserve Bank of New Zealand Act 2021

You need to know what happens if there is no funding agreement for a financial year, called year A. The board must make sure the Bank's spending follows the rules in the last funding agreement. This agreement is for the previous financial year and its rules apply to year A with some changes.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS325523.

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211: Funding agreements to be published and presented to House of Representatives, or

"The Reserve Bank must share its funding agreements with the public and Parliament."

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213: Determination of annual dividend, or

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

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

212Expenditure where there is no current funding agreement

  1. If, despite section 209(2), there is no funding agreement in place for a financial year (year A), the board must take all reasonable steps to ensure that the Bank’s expenditure complies with the requirements in the most recent funding agreement for the last financial year to which that agreement applies (and those requirements apply to year A with all necessary modifications).