Section outline

  • Week 5: Non-bank deposit takers and non-depository institutions

    Week 5 continues the discussion of financial institutions in New Zealand. This week's focus in on those depository institutions known as non-bank deposit takers, and non-depository institutions such as insurers and fund managers.  At the end of this week you will be aware of the different types of depository and non-depository institutions in the New Zealand market and their characteristics.  In particular you will be able to distinguish between banks and non-bank depository institutions, as well as non-depository institutions, understand the product markets they operate in and the relative riskiness of each.

    Your tasks for Week 5 

    Reading

    Please read the following article by Barker and Javier (2010) for an understanding of what non-bank deposit takers are and how they are regulated in New Zealand.

    • Regulating non-bank deposit takers File

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      The following link takes you to a New Zealand Government web-page that concisely summarises how to invest in shares in New Zealand. Please read this page to get an understanding of how to make a direct investment in shares.

    • Buying shares in New Zealand URL

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      Insurers in New Zealand must be licensed.  Please read the following web-page by the Reserve Bank of New Zealand to understand why. A list published by the Reserve Bank of insurers currently licensed is also provided to give you an appreciation of the number and diversity of insurers in New Zealand.

    • Regulating insurers URL
    • Licenced insurers URL

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      The following link takes you to the Sorted web-page that explains what managed funds are.  Please read this.

    • Managed funds URL

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      An important piece of information in understanding the riskiness of financial organisations is credit ratings. Please read the brochure 'Know your credit ratings' (Reserve Bank of New Zealand, 2010) to get an understanding of what credit ratings are and what they mean.  For more detail, please read the Reserve Bank's "User's Guide to Credit Ratings".

      Also, attached for you to look at are listings of registered banks' and non-bank deposit taking institutions' credit ratings published by the Reserve Bank.

    • Know your credit ratings File
    • User's guide to credit ratings (pdf) File
    • Bank credit ratings URL
    • Non-bank deposit taking institutions' credit ratings URL

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      Activity

      Please take the following quiz on financial institutions and credit ratings.

    • Non-banks and credit ratings Quiz