It also bears stating that our requirements do not deny the many overseas-owned banks operating in New Zealand the benefits of large overseas-bank parentage, nor overseas banks the benefits of a New Zealand presence. New Zealand banks with overseas parentage benefit a lot from that parentage.
Parent banks generally are a source of capital, a source of rating strength, which helps to lower New Zealand bank funding costs, as well as a source of risk management and systems expertise. For overseas banks, New Zealand is an open and welcoming market, with a level playing field for local and overseas participants.