Financial intermediation beyond the banks: recent developments

The New Zealand financial system is dominated by banks, whose assets are well over 90 per cent of those of all deposit-taking institutions. Banking groups also own funds management businesses with more than a quarter of all funds under management. However, the activities of savings institutions, finance companies, the non-institutional market and independent fund managers are important, not withstanding their relatively reduced role. This article discusses developments in non-bank financial institutions and markets over recent years.