While the report identified forty-seven recommendations, regulators in the United States and other countries have focused on two major weaknesses. One weakness relates to the lack of discipline in enforcing contract terms. Any time an instrument is traded over the counter, it is important to know with whom you are doing business.
We monitor the financial system… We continuously monitor the financial system in order to identify and assess: •  •  Structural risks: ever-present risks related to the composition of the financial system, in terms of its institutions, and their assets and funding. New Zealand is exposed to external shocks and standards must recognise these risks and shield the domestic system and economy.