Bank accounts and securities

The Crown Entities Act 2004 sets limits on the types of financial institutions that schools can bank with or invest funds in.

Approved bank accounts

Your school’s bank accounts must be held in registered banks or building societies that either meet the credit test specified in the Crown Entities (Financial Powers) Regulations 2005 or have been approved by the Minister of Finance.

School bank accounts must be in:

  • the name of the school only and cannot include the name of a service provider, for example, Kiwi Park School or Kiwi Park School Board of Trustees
  • New Zealand dollars unless the Minister of Finance allows otherwise.

The accounts must be held at:

  • a registered bank or registered building society that meets the credit rating specified in the Crown Entities Act s158(1)(a) and the credit rating test set out in Regulation 7
  • a registered bank or registered building society that meets the conditions of any relevant approval given by the Minister of Finance by notice in the Gazette
  • a bank outside New Zealand that meets the conditions of any relevant approval given to all schools or conditions related to an individual school, a group of schools or a type of bank account, or is authorised by the Minister of Finance.

Banks currently approved for use by school boards of trustees are:

  • ABN AMRO Bank NV
  • ANZ National Bank Limited
  • ASB Bank Limited
  • Bank of New Zealand
  • Citibank N A
  • Commonwealth Bank of Australia
  • Deutsche Bank A G
  • Heartland Bank Limited
  • Kiwibank Limited
  • Rabobank Nederland
  • Rabobank New Zealand Limited
  • Southern Cross Building Society
  • The Bank of Tokyo-Mitsubishi Limited
  • The Hongkong and Shanghai Banking Corporation Limited
  • TSB Bank Limited
  • Westpac Banking Corporation.

The Reserve Bank maintains a list of registered banks and their credit ratings (external link) .

You can find more information on school bank accounts by schools in the Financial Information for Schools Handbook (FISH) [PDF, 560 KB]. The Bank Accounts section (3.3.2) explains:

  • what to do if your current bank is not listed above
  • restrictions on operating overseas bank accounts
  • restrictions on operating bank accounts in a foreign currency.

Approved securities

School boards of trustees may only invest funds in public securities or securities issued by financial institutions that either meet the credit test in the Crown Entities (Financial Powers) Regulations 2005 or have been approved by the Minister of Finance.

Public securities include:

  • Treasury bills
  • government stock
  • other bonds, notes or debentures issued as part of the public debt of New Zealand.

Securities issued by the following financial institutions are currently approved for school investments:

  • ABN AMRO Bank NV
  • ANZ National Bank Limited
  • ASB Bank Limited
  • Bank of New Zealand
  • Canterbury Building Society
  • Citibank N A
  • Commonwealth Bank of Australia
  • Deutsche Bank A G
  • Hamilton Catholic Development Fund
  • Heartland Bank Limited
  • Kiwibank Limited
  • Rabobank Nederland
  • Rabobank New Zealand Limited
  • Southern Cross Building Society
  • The Bank of Tokyo-Mitsubishi Limited
  • The Hongkong and Shanghai Banking Corporation Limited
  • TSB Bank Limited
  • UDC Finance
  • Westpac Banking Corporation.

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