The IMF is making evaluation of financial supervision and regulation part of its annual country reviews, and the World Bank is emphasising the strengthening of financial infrastructure as an important part of its structural assistance programmes.
While these international initiatives have many positive features, there are aspects that conflict with our approach to promoting soundness and efficiency of the New Zealand financial system and give us some concern. I will elaborate on these in a moment. At the national level, the preservation of a stable financial system remains one of the most challenging tasks facing governments today.