The Reserve Bank of New Zealand is the central bank of New Zealand, responsible for managing the country's monetary policy and ensuring financial stability. It was established in 1934 and plays a crucial role in regulating the banking system, issuing currency, and setting interest rates to control inflation. In addition to its monetary policy functions, the Reserve Bank oversees the financial system's safety and soundness. It monitors banks and financial institutions to ensure they operate effectively and can withstand economic shocks, contributing to the overall health of the New Zealand economy.