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.
This is a responsibility we take seriously, and it is reflected in what we do in a number of ways. Not least, we see retaining the openness of the New Zealand banking system to overseas ownership as important for promoting competition and innovation in the New Zealand banking market.