However, there are other aspects to efficiency to consider also, including allocative and dynamic responses. For example, our outsourcing policy could lead to better capital allocation due to more local decision making capacity, as well as systems that are more flexible and responsive to local needs.
These aspects are especially important for the growth of small to medium size enterprises that dominate the New Zealand business landscape. Such benefits could accrue to bank shareholders and customers, as well as the wider New Zealand economy.