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RBNZ lends banks NZ$500 mln in first TAF

RBNZ lends banks NZ$500 mln in first TAF
The Reserve Bank held its first weekly Term Auction Facility on Wednesday and accepted NZ$500 million of the NZ$550 million of bids to lend to banks against security such as Residential Mortgage Backed Securities (RMBS). The Reserve Bank's reverse repo allocated NZ$50 million for a three month term, NZ$150 million for a six month term and NZ$300 million for a one year term. The full results are here. The Reserve Bank did not detail who had used the facility or what security was offered. Westpac and ANZ National have both built RMBS facilities that have received credit ratings, but the Reserve Bank has previously said it would accept RMBS as collateral that was about to receive a credit rating. Both BNZ and ASB are also building RMBS facilities. * This article was first published yesterday in our daily subscription newsletter for the banking and finance industries. The email costs NZ$365 per annum and carries exclusive news and analysis for New Zealand banking and finance industry executives, regulators and investors. Sign up for a free trial here.

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