The emergence of cross-border banking structures, on the other hand, also creates major challenges for supervisory bodies. Despite the somewhat disappointing state of banking integration in general, the common market and EMU have already initiated perceptible cross-border M&A activities.
This enables us to keep the OCR as well-positioned as we can, and our policy strategy wellunderstood, so that our efforts to maintain stable inflation do not cause more economic volatility than necessary. References  Bergstrom, K and O Karagedikli (2013) “The interest rate conditioning assumption: investigating the effects of central bank communication in New Zealand”, RBNZ Discussion Paper, forthcoming.