We are currently reviewing our regulatory experience over the post-GFC period and thinking how we might shape the New Zealand framework going forward. Two particular catalysts in this regard are the recent IMF Financial Sector Assessment Program (FSAP) report, and our recently initiated review of bank capital adequacy.
Lastly, I would point out the need for identifying exactly what influence monetary policy will have in the transformed economic and financial environment following the crisis. This crisis has had a devastating impact on the balance sheets of households, corporations and financial institutions, not to mention the government’s fiscal position.