Reserve Bank Governor Alan Bollard says he will not be seeking a third term for New Zealand's central bank leadership.

Bollard said on Monday that he will step down term when his current term ends on Sept. 25.

In a statement, Bollard said the focus of his final eight months at the central bank will be the serious economic and financial challenges facing New Zealand.

"As I noted last week, the bank is ready to respond to ongoing developments overseas, especially in Europe, the US and China, as well as domestically, particularly the Canterbury earthquakes," Bollard said. "The bank's expanded prudential regulatory responsibilities mean we will continue to introduce new prudential requirements this year, especially in the insurance and non-bank sectors."

Bollard is a previous secretary to the Treasury who was appointed as governor in September 2002, and had earlier led the Commerce Commission. He published a book last year on his experience as central bank governor during the global financial crisis.

Meanwhile, Reserve Bank chairman Arthur Grimes said the board will search locally and abroad to find Bollard's successor.