Reserve Bank begins consultation on $209 million prudential levy
The Reserve Bank has started consulting on a proposed $209 million prudential levy on banks, insurers and other financial institutions set to begin mid-2027.
The Reserve Bank of New Zealand has launched consultation on the detail of its $209 million prudential levy, announced during Budget 2026. The levy would apply to banks, non-bank deposit takers, insurers and financial market infrastructures from mid-2027. Treasury estimates that if financial institutions pass the costs to customers, borrowing costs would rise by less than one basis point and insurance premiums by less than 0.2%.
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Reserve Bank starts prudential levy consultation
The Reserve Bank of New Zealand has begun consultation about the fine detail of its proposed $209 million prudential levy, which was announced at the time of Budget 2026 in May. It would apply to banks, non-bank deposit takers, insurers…
interest.co.nz
RBNZ Assistant Governor McGregor says prudential levy won't change how RBNZ operates
Reserve Bank to lay out its case for changes to New Zealand’s payments system this month, Assistant Governor Angus McGregor says
interest.co.nz
Impact of passing on prudential levy to customers would be modest – Treasury
Treasury estimates if financial institutions pass on prudential levy costs to customers, the cost of borrowing would increase by less than one basis point and insurance premiums would jump by less than 0.2% on average