The Reserve Bank of New Zealand said the Government has decided in principle to introduce a levy under the Reserve Bank of New Zealand Act to cover the Bank’s costs in carrying out its prudential functions and powers. Before levy regulations can be recommended, the Bank will run the required consultation on the Minister’s behalf with entities that would pay the levy or be significantly affected by it. The consultation will address whether the levy should fund all or only part of those costs, which sectors should fall within scope, and how the amount payable by each regulated entity should be calculated or otherwise determined. The consultation follows section 296(1) of the Act, which requires consultation before the Minister recommends regulations.