New Zealanders have long had to rely on public banks for their bank accounts and to access their savings.
However, as of last month, the Government will not provide new private bank deposits for people over the age of 60.
IBC bank was founded by former New Zealand Reserve Bank governor Peter Riddell in 2009 and became New Zealand Bank for New Zealand in October.
Its headquarters are in Auckland.
A spokeswoman for the New Zealand government said the bank will not accept deposits for any financial services or assets for which New Zealand has no central bank, as long as the bank has a deposit guarantee scheme.
“The Government is committed to ensuring New Zealand remains a place where people can access the banking services and assets they need to finance their everyday lives,” she said.
The spokeswoman said the Government would work with the private sector to provide deposit guarantee services, including by building new branches in other countries.
Riddell has previously said that he was not worried about the bank’s new role.
In March, he told the NZ Herald: “I don’t want it to be a bank for the big banks.
I want it [a new bank] to be something that I can be proud of as a New Zealander.”
“I want to be part of the solution to the problem that we’re in, the problem with our banking system,” he said.
“I’m looking forward to being part of that solution.”