However, as the proposal is still under our consideration, it would be inappropriate for me to comment further on that alternative structure at this time. Are these RBNZ banking supervision requirements burdensome? Our requirements of overseas-owned banks in New Zealand are not onerous or costly for those banks. Let me explain why not.
First, there is nothing in what we require that APRA would not require of an overseas-owned bank that was systemically important to Australia. I say “would not” because Australian policy to date has precluded systemically-important overseas-owned banks in Australia. Second, the Reserve Bank of New Zealand Act requires that we promote the efficiency as well as the soundness of the New Zealand financial system.