This focus involves establishing a policy environment to counteract the possibility of contagious spread of financial distress, and in particular is aimed at encouraging prudent bank behaviour. I will begin by sketching out some of the key trends in global finance, and will then describe the international regulatory response to these developments.
Along the way, I will tease out the implications for New Zealand, and test our approach to banking supervision against these global developments. I will conclude with some crystal ball gazing. Trends in the global financial marketplace Let me begin then with some observations on the rapidly changing global financial marketplace.