As mentioned at the outset, the New Zealand banking sector did not experience the sorts of problems that affected the US or European banking systems. Despite a tightening in lending conditions and standards, which had a significant effect on some businesses, our banking system was largely able to maintain the confidence of depositors and creditors.
However, it  BIS central bankers’ speeches  5  did still require a backstop of government support. In the aftermath of the crisis we are aligning our prudential initiatives with global efforts focussed on redesigning the regulatory safety net.