9 NOVEMBER
NEW ZEALAND GAZETTE
4323

Reserve Bank

Reserve Bank of New Zealand Act 1989

The Annual Fee For Registered Banks

Pursuant to section 79 of the Reserve Bank of New Zealand Act 1989, the Reserve Bank of New Zealand gives notice that the annual fee that shall be paid to the Reserve Bank of New Zealand by every registered bank for the period commencing 1 July 1995 and ending 30 June 1996, shall be determined as follows:

[1] Interpretation—Unless the context otherwise requires:

“The Act” means the Reserve Bank of New Zealand Act 1989.

“Annual fee” means the amount determined by the Reserve Bank of New Zealand pursuant to section 79 of the Act as the annual fee that shall be paid to the Reserve Bank of New Zealand by every registered bank.

“Category A bank” means a registered bank that is incorporated in New Zealand and which is directly or indirectly controlled by either persons ordinarily resident in New Zealand, or by persons resident overseas and not registered, authorised, constituted or licensed in that country as a bank under legislation comparable to Part V of the Act.

“Category B bank” means a registered bank that is incorporated outside New Zealand, or is directly or indirectly controlled by persons resident overseas which are registered, authorised, constituted or licensed in that country as a bank under legislation comparable to Part V of the Act.

“Holding company”:

(a) in relation to a company registered under the Companies Act 1993 means a holding company as defined in the Companies Act 1993;

(b) in relation to a company registered under the Companies Act 1955, means a holding company as defined in the Companies Act 1955.

“Risk adjusted exposures” in relation to a registered bank means the amounts calculated or derived in respect of that registered bank from information supplied or required to be supplied to the Reserve Bank of New Zealand in return No. R.B. PS1 “Return of Capital Adequacy and Off-Balance Sheet Business”.

[2] Amount of fee determined—(1) Subject to subparagraphs (2), (3), (5) and (6), the annual fee for the year commencing 1 July 1995 shall be the same as the annual fee for the year ended 30 June 1995.

(2) Where a registered bank has, during the year ended 30 June 1995, absorbed the undertakings of a subsidiary registered bank, the annual fee shall be:

(i) In respect of a Category A bank:

=[$20,000 + 0.00001579 × X_Ai] × 1.125,

where X_Ai = Risk adjusted exposures (expressed in dollars) of the consolidated group as at 30 June 1994.

(ii) In respect of a Category B bank:

=[$20,000 + 0.00000947 × X_Bi] × 1.125,

where X_Bi = Risk adjusted exposures (expressed in dollars) of the consolidated group as at 30 June 1994.

(3) Where the risk adjusted exposures of any registered bank are not derived or calculated as at 30 June 1994, the Reserve Bank may determine the date as at which the risk adjusted exposures of that bank shall be derived or calculated for the purpose of determining the annual fee payable by or on behalf of, that registered bank.

(4) The amounts determined pursuant to subparagraphs (1) and (2) of this paragraph include goods and services tax.

(5) The amounts determined pursuant to subparagraphs (1) and (2) of this paragraph shall be round to the nearest thousand dollars.

(6) Where a registered bank is the holding company of another registered bank, a separate fee will normally be charged for each registered bank. Where a separate fee is charged, and the risk adjusted exposures reported in R.B. PS1 by the registered bank which is the holding company include the risk adjusted exposures of the other registered bank, the risk adjusted exposures of the subsidiary bank shall be deducted from the holding company’s risk adjusted exposures for the purpose of calculating the fee payable by the bank holding company.

[3] Period to which the annual fee relates—(1) Subject to subparagraph (2) of this paragraph the annual fee shall be payable in respect of the period commencing on 1 July 1995 and ending 30 June 1996.

(2) The amounts determined in accordance with this notice in respect of a Category A bank, or a Category B bank, shall be payable in respect of the period during which it is a Category A bank or a Category B bank, as the case may be. Where a Category A bank becomes a Category B bank, or vice versa, it shall, as from the date on which such change occurs, be liable to pay an annual fee calculated at the rate applicable in respect of that new situation.

(3) In the event that the date on which section 6 of the Reserve Bank of New Zealand Amendment Act 1995 comes into force falls within the period commencing on 1 July 1995 and ending 30 June 1996, any monthly instalments that fall due after that date shall not be payable.

(4) The annual fee shall be payable in 12 monthly instalments, each instalment becoming due on or before the 20th day of every month of the period covered by this notice.

(5) Where the risk adjusted exposures of a registered bank are reduced by reason of the fact that any subsidiary of that registered bank becomes a registered bank, the fee of the first registered bank for the period after the date of registration of that subsidiary shall be recalculated, in accordance with the formula set out in paragraph [2] (2) of this notice, after deduction of the risk adjusted exposures of that subsidiary as at 30 June 1994 (subject to paragraph [2] (3) above).

RIGHT HON. W. F. BIRCH, Minister of Finance.

Explanatory Note:

This note is not part of the Notice but is intended to indicate its general effect and the basis on which the annual fee is calculated and its relationship to the anticipated costs of the Reserve Bank in exercising the powers conferred on it by Part V of the Act.

1. Pursuant to section 79 of the Act, in determining fees the Reserve Bank has had regard, in particular, to the new banking supervision regime which will take effect on 1 January 1996. Section 79 of the Act will be repealed on 1 January 1996 and fees falling due after that date will not be payable. The Reserve Bank considers that, in light of these changes and the reduced term over which the fees will be payable, annual fees should generally be charged on the same basis as for the year ended 30 June 1995.

2. However, the Reserve Bank considers that, if during the year ended June 1995, a registered bank absorbed the undertakings of another registered bank, the remaining bank’s annual fee should reflect the higher level of risk weighted exposures now held by that bank.