It is my firmly-held conviction that we would have adopted this approach even if all or most of our banks had been locally-owned. I say this because we believe that the regime is actually more likely to promote prudent banking behaviour than do the more traditional approaches, but with a lower likelihood of moral hazard and regulatory distortion.
In this context, I should note that, at the time we commenced our review of banking supervision, in late 1991, a significant part of the New Zealand banking system was still domestically owned.