2  A brief history of banking regulation  Safeguarding financial stability – as a prerequisite for macroeconomic growth and prosperity – is the main driver behind banking regulation. Consequently, calls for better banking regulation have typically emerged in the wake of financial instability.
The challenge for us now is a more nuanced one:7 7 In New Zealand, the scope of this debate, is informed by the Bank’s remit and the letter of  expectations (LoE) from the Minister of Finance to the Governor of the Reserve Bank outlining broad expectations of the Bank's relationship with the Minister and areas of particular interest.