Budget 2026 introduces a new prudential levy on banks, non‑bank deposit takers, insurers, and other financial market participants to help cover the costs of services provided by the Reserve Bank, Finance Minister Nicola Willis says.
“This mirrors the approach taken by the Financial Markets Authority and the Commerce Commission which fund much of their activity through levies on financial market participants.
“It is also consistent with international practice in countries like Australia, Canada and the United Kingdom.
“This levy will ensure the cost of regulation and supervision is borne by financial market players rather than taxpayers.
“The prudential levy is estimated to recover around $209 million over the next four years. The levy will be paid to the Reserve Bank, with the revenue returned to the Government through an increased dividend.
“In a more unstable world, it’s important we strengthen the financial system, so it keeps working for Kiwis when times get tough.
“The Reserve Bank will commence consultation with the sector following the Budget. Cabinet is aiming to make decisions early 2027 with a view to the levy being introduced mid-2027.”