Section outline

  • Week 4: Financial markets and registered banks

    Week 4 is in two parts.  The first part completes the discussion on fiscal and monetary policy by looking at financial markets.  In particular, focus is given to money markets and how they are used to enact monetary policy. The second part begins the discussion on some of the financial institutions that you may be using in your personal financial management. These institutions include depository and non-depository institutions.  The first of these to be discussed this week are registered banks (which are the major depository institutions in New Zealand).

    At the end of Week 4 you will be able to show that you are aware of financial markets, some money market terms in common usage, the essential characteristics of each type of money market security, and their place in personal finance management. As well, you will understand the essential characteristics that define a registered bank.

    Your tasks for Week 4

    Reading

    Please read the summary of pp 86-91 Parry, Wirth and Bennett (2009) for an explanation of the roles of money markets.

    • Financial Markets File

    •  

      Banks that have the status of 'registered bank' in New Zealand is listed by the Reserve Bank of New Zealand and a link to that list is provided below. Look also at the Reserve Bank's banking supervision handbook for the conditions and process for obtaining registered bank status and the key prudential requirements of being a registered bank.

    • Registered banks in New Zealand URL
    • Bank Registration URL
    • Banking supervision handbook URL

    •  

      Activity

      You will have seen from the bank registration process that organisations wishing to be registered as a bank in New Zealand must meet rigorous standards and conditions. List three reasons why you think such high hurdles are necessary.

    • Reasons for rigorous conditions for bank registration Quiz

      There is a glitch in the system so please ignore the wording of the question when you open the quiz. Please answer the following question in the box provided when you open the link to the question:

      Organisations wishing to be registered as a bank in New Zealand must meet rigorous standards and conditions. List three reasons why you think such high hurdles are necessary.

    •  

      Please submit the first instalment of your reflective journal using the following link.

    • Submit first instalment of your reflective journal Assignment