And the reason for this is that, perhaps because New Zealand has had a freely floating exchange rate for more than 15 years now, banks and corporates in New Zealand tend not to borrow overseas in foreign currency without hedging the exchange rate risk.
Conclusion: International cooperation as precondition for effective regulation  Ladies and gentlemen, let me conclude my remarks with something that is very important to me. Any regulatory project needs international cooperation. If we do not coordinate our approaches towards regulation, we will create a fragmented financial system with vast opportunities for regulatory arbitrage.