In recent times, an important reforms measure being pursued is to improve regulation and oversight of Shadow Institutions, so as to limit arbitrage opportunities, arising from the transfer of risk to relatively less regulated areas/sectors. The regulators therefore, are now focusing on minimizing the regulatory gaps in the shadow banking framework.
Mr Brash: Will the Reserve Bank choke the recovery? Address by Dr Donald T Brash, Governor of the Reserve Bank of New Zealand, to the Auckland Regional Chamber of Commerce & Industry, Auckland, on 21 March 2000.