The Reserve Bank of New Zealand granted an extension to Westpac New Zealand on one norm related to outsourcing policy after finding it was in breach during the six month period to September 2010.The policy relates to certain settlement services that are currently provided by Westpac's NZ branch in relation to functions provided by Interchange and Settlement Limited.Westpac had an exemption until March 2010 on one aspect of this policy. This has now been extended until September 2011. Thus until September 2011, services provided by Payments NZ Limited and related settlement services provided to Westpac NZ by Westpac Banking Corp, are not covered by the policy.The Reserve Bank's outsourcing policy requires that certain core functions must be available under normal conditions and in the event of stress and failure of the bank or of a service provider to the bank. Under this policy, services provided to the bank by the ultimate parent bank or NZ branch of Westpac are regarded as outsourced.