The new banking supervision arrangements, which came into force on 1 January 1996, reflect these conclusions. BIS Review /1997  -3-  The new approach differs from the former regime in two main areas. First, a new disclosure regime applicable to all banks operating in New Zealand has been introduced.
The current level of on-hand liquidity, however, appears to go well beyond the amount of such precautionary demand. As for the use of excess funds, there are only three options: making real or financial investments at home and abroad; disbursing funds to employees in the form of wages; and returning them to stockholders through dividend payments and share buybacks.