New Zealand banks set up new company for interbank payment, clearing & settlement

New Zealand’s main banks have formed a new company to oversee the interbank payment clearing and settlement system. This is the system which handles all payments made by customers of one bank to the customers of another bank, including automatic payments, cheques and eftpos transactions.

The system processes about 6 million payments a day, estimated to be worth more than NZ$35 billion.

Payment NZ (PNZ) will take over governance of the system from the New Zealand Bankers' Association, of which the banks are all members.

PNZ chief executive Steve Nichols said the changeover had been worked through with the New Zealand Reserve Bank over a number years.

The new ownership structure would allow faster introduction of new technology and innovations, Mr Nichols said.

Technology changes would allow non-bank financial institutions such as building and credit societies to join the payment system later next year, allowing those organisations to offer more payment options to their customers.

The shareholding banks are ANZ National, ASB, BNZ, Citibank, HSBC, Kiwibank, TSB and Westpac.