RBNZ Opens Door to Non-Bank ESAS Membership

The Reserve Bank of New Zealand (RBNZ) has made a significant change to its Exchange Settlement Account System (ESAS), admitting a non-bank institution for the first time in three decades. The decision follows a review of access criteria, which had previously limited ESAS membership to registered banks.

Nelson Building Society, a non-bank deposit taker, is the inaugural member under the new rules. It has completed system testing and onboarding and is now live, with its status confirmed on the RBNZ's public ESAS member register.

The reform aims to foster innovation and competition in the finance sector while maintaining the safety, security, and integrity of the system. According to Steve Gordon, Financial Market Infrastructure and Settlement (FMI&S) director, the review balanced competing priorities and allowed non-bank entities to settle payments directly in risk-free central bank money without using a commercial bank as an intermediary.