While the implicit support of the parent banks is valuable for the New Zealand system, it is also a vulnerability. For example, in recent times the Australian parent banks have been on negative outlook and, separately, APRA has placed restrictions on the ability of the parent banks to give credit support to their international subsidiaries.
This means that school children and college students should acquire basic proficiency in financial concepts. Why is this important? This is important both for you as individuals and for the country as a whole. When children grow up and start earning, they should know their options – where to save, when to save, how and how much to save.