Much has been done in New Zealand in recent decades as governments, firms and individuals have begun to awaken to the implications of the world economy for New Zealand’s future economic prospects.
For example, some of the recommendations that have been made by the Financial Stability Forum are to strengthen the prudential framework for banks, including with regard to capital, liquidity, risk management and market infrastructure, to strengthen the framework for transparency and valuation, changing the role and uses of credit ratings, and enhancing the responsiveness of authorities to risks and cooperation in dealing with weak banks.