Reserve Bank of New Zealand opens Phase 1 ESAS access applications for licensed non-bank deposit takers and revises access criteria

The Reserve Bank of New Zealand has opened applications from licensed non-bank deposit takers (NBDTs) seeking access to the Exchange Settlement Account System (ESAS) to hold reserves to meet prudential liquidity requirements, and has published updated ESAS access policy and criteria following a comprehensive access review. Phase 1 is limited to New Zealand-licensed NBDTs, including finance companies that raise funds from the public, and most building societies and credit unions. Applications will be assessed case by case, but the process is expected to be less complex and capable of being expedited given NBDTs’ intended use of ESAS and their existing licensing. The review, completed in March 2025 after two public consultations (most recently in November 2024), resulted in changes including simplified and clarified access criteria and confirmation that successful applicants will be eligible to receive the overnight deposit rate on their balances; the first application step is submitting an expression of interest form. The Reserve Bank expects to open applications to other non-bank entities in the third quarter of 2025 and is developing operational guidance. A further update will set out the opening date and next-phase details for entities whose business activities align with ESAS’s purpose, which may include payment service providers, overseas deposit takers and operators of designated financial market infrastructures, while registered banks can continue to apply for ESAS access at any time.