Taking appropriate measures depending on the state of interconnectedness  The second challenge is to take appropriate measures that consider the state of interconnectedness of settlement between market participants. In practice, the network of interconnections within the financial system is very complex. In a single financial market or a payment and settlement system, market participants are interconnected through trading and settlement activities.
And,    Recognising that the “impact of bank failures would be broader and harsher the larger and more intertwined the failed banks are with New Zealand’s economy” what regulatory and prudential settings would mitigate the risk of failure?31  These are all immediate challenges being confronted by your team working at Te Pūtea Matua.