Evolving structural changes in the financial sector pose less of an immediate threat than the pandemic crisis, but could prove more disruptive in the long-term unless the sector responds to meet customer, investor and 1 I am very grateful to Tom Bird for considerable assistance in the preparation of this speech, along  with valuable comments from other Reserve Bank colleagues.
3  regulator expectations. For New Zealand, with its bank-dominant financial system, a vibrant, innovative and sustainable banking sector is crucial to our collective wellbeing (Figure A). The COVID-19 crisis has reinforced the focus of the Reserve Bank – Te Pūtea Matua – on resilience in regulatory policy settings, including the imperative of strong capital and liquidity requirements.