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Pressure from the newly formed Colonial Parliament, the Union Bank Of Australasia , and the local commercial sector, along with views developed in the Colonial Office in the United Kingdom to allow experimentation on competition in the issue of banknotes, led to the bank being wound up by the New Zealand Colonial Bank of Issue Winding-Up Act 1856 .

Source: The legal history of money in New Zealand, Ken Matthews, Reserve Bank of New Zealand: Bulletin Vol. 66 No. 1 available here