The Reserve Bank of New Zealand has tabled its annual report yesterday, announcing a dividend of $630 million for the government that injected $600 million of additional capital in the bank in July 2008. Reserve Bank Chairman Arthur Grimes hailed the monetary policy adopted by the bank at the peak of global financial crisis by suitably adjusting key interest rates to bring stability in the financial market.

The bank significantly widened its balance sheet, registering 69 per cent increase in its net profit that stood at $906m, as compared to $535m earned in 2008. The bank's high profit margin is led by foreign currency gains and central bank's efficient interest rate management, in line with changing trends in the economic conditions.

RBI Governor Alan Bollard, cautioning against vulnerabilities and imbalances of economy, said: "We now think we are through the worst. The banking system has held up reasonably well and the economy has not sustained major damage."

Bollard called for the need to efficiently handle current account deficit for the country's economy to remain stable in future. He further said that the apex bank is closely watching trends in international regulatory developments, especially, proposals for counter-cyclical capital requirements.