International Banking

You’ll be pleased to find that banking in New Zealand is refreshingly modern and efficient.

 

Use of EFTPOS cards (Electronic Funds Transfer at Point of Sale) is the most common form of daily transactions, and online banking is widely used by individuals, businesses and organisations.

 

All of the major banks in New Zealand are well experienced in assisting newcomers to the country, and most have dedicated migrant banking specialists to help you. In most cases, you will be able to set up bank accounts, and arrange for transfer of funds and foreign exchange facilities before you arrive in New Zealand.

 

The transfer of funds or capital to New Zealand can be arranged electronically with the major banks, and the bank will generally assist with arranging interest-bearing accounts for the transferred funds and may be able to offer forward contracts on foreign exchange rates to lock in the rate at which your funds will be converted to New Zealand dollars.

 

For your security, all banks operating in New Zealand must be registered with the Reserve Bank of New Zealand (RBNZ).  There are currently 19 banks registered in New Zealand, providing a full range of banking services, including foreign exchange facilities and migrant banking services.

Registered banks in New Zealand must maintain a credit rating issued by one or more of three credit rating agencies: Standard and Poor’s, Fitch, and Moodys. The major banks average AA or higher ratings.  All registered banks are required to publish a summary of their financial performance and risks every three months.

 

For links to New Zealand banks, and to see their current credit ratings, visit: www.rbnz.govt.nz

 

New Zealand has a large number of accountants and accounting firms providing professional financial services to businesses. The major international accounting companies are all represented here, and there are numerous local firms or sole practitioners also available. The New Zealand Institute of Chartered Accountants has a searchable directory, see: www.nzica.com.

 

A number of finance companies offer fixed interest securities to the public. However, in recent years, several finance companies have collapsed in New Zealand and in 2008 significant laws were passed to increase regulation of finance companies, which will come into force in stages through 2009-2010.  The changes include minimum capital and governance requirements, and a requirement to provide a credit rating from an approved rating agency.

 

Some investments with finance companies are covered by a retail deposit guarantee scheme provided by the government.

 

For more details of finance companies see the Financial Services Federation, an incorporated society of non-banking finance companies. See: www.fsf.org.nz

Building societies and credit unions provide services and offer fixed interest securities, similar to a registered bank. They must have prospectuses and investment statements that explain the investments. They are not registered or supervised by the Reserve Bank of New Zealand, but they are supervised by trustees. For links to credit unions and building societies see:

 

New Zealand Association of Credit Unions

The Financial Services Federation