RBNZ said it is ramping support for businesses and banks by accepting corporate debt and other assets as security for loans to banks. The aim is to “pump more money into the economy through the banking system. ”
Assistance Governor Christian Hawkesby said, “by banking the banks, we are ensuring large businesses can better manage their cash flows, and lower their funding costs.”
The RBNZ will have a weekly window for retail banks to access the money, with an offer to lend around $500 million each time for up to three months.
