In the final analysis, we must have a capital framework that is suited to the specific conditions and risks of New Zealand, not other jurisdictions. Conclusion Ensuring the soundness and efficiency of New Zealand’s banking system is a core responsibility of the Reserve Bank of New Zealand, and one to which we devote great time and effort.
This process could provide an opportunity for exerting peer pressure among members to undertake the required structural reforms. Regarding the design of the relevant supervisory mechanism some progress was made during a meeting of the G20 in mid-February. Though difficult negotiations still lie ahead I am confident that they will eventually lead to viable results. 4.