Relative to the trends over the past two decades, we are experiencing stronger economic growth, lower inflation, and a lower unemployment rate - even with record levels of labour force participation. And the Achilles heel of many New Zealand expansions – a large current account deficit – has not eventuated (figure 1).
On the other hand, the regulatory framework is still evolving; the international standards for the Total Loss Absorbing Capacity (TLAC), issued last November by the Financial Stability Board for large global banks, will have to be transposed in Europe, consequently modifying the current provisions of the BRRD.