New Zealand will introduce a prudential levy on insurers, banks and other financial market participants to cover the cost of Reserve Bank supervision.

Finance Minister Nicola Willis says the change is consistent with Australia, Canada and the UK, and mirrors the approaches of the Financial Markets Authority and the Commerce Commission. 

“This levy will ensure the cost of regulation and supervision is borne by financial market players rather than taxpayers,” she said. 

The charge is expected to be introduced in the middle of next year and will recover about $NZ209 million ($174 million) over the next four years. 

There are 81 licensed insurers in the country, 27 registered banks, 14 licensed non-bank deposit takers, and five designated financial market infrastructures.