GSCs and the Financial Version of the "Tragedy of the Commons" As I have mentioned earlier, one of the features of public goods is that consumption by an individual or a group of individuals does not reduce the good's availability to others. For example, no matter how much air (i.e. public good) I breathe in, it does not limit your air consumption.
As the regulator for insurers, the Reserve Bank is now responsible for overseeing the introduction of new prudential requirements for insurers, including new solvency standards, fit and proper requirements for directors and other senior officers, and a requirement that insurers have appropriate risk management programmes. All insurers wanting to continue insurance business in New Zealand must obtain a licence by March 2012.