Reserve Bank of New Zealand

28 October 2005

News Release

Reserve Bank releases Annual Report

The Reserve Bank today released its 2004-2005 Annual Report.

Reserve Bank Governor Alan Bollard said many of the achievements in the
Annual Report in 2004-2005 were firsts for the Bank.

These included the first of the Bank's six-monthly Financial Stability
Reports, assessing the robustness of the financial system; a Statement
of Intent; consultation with our stakeholders (New Zealanders) on
changes to our 'silver' coins; and the Bank's admission to CLS Bank's
settlement system, Dr Bollard said.

The Annual Report draws particular attention to the designs and colours
of the new 'silver' coins which are to be introduced in mid-2006.

"The Bank, like our currency, is changing with the times. There are
several other areas where extensive new work began," he commented.

"This includes work on the formation of a Trans-Tasman Council on
Banking Supervision and reviews of financial regulation and supervision.
We also consulted with banks on a draft outsourcing policy for banks."

Dr Bollard said the Bank had continued to put considerable effort into
explaining its monetary policy decisions and soliciting feedback on
economic conditions from the business community.

From a financial aspect, the Annual Report shows that the Bank spent a
net $29.1 million on activities covered by the Bank's Funding Agreement.
This was 12 per cent below the $33 million permitted. The Bank
generated a surplus of $272.7 million, of which $139.3 million was paid
as a dividend to the Crown.

The 2004-2005 Annual Report is available on the Bank's website at
www.rbnz.govt.nz.

ENDS

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