6  BIS Review 55/2004  In the absence of any fair and formalised, operationally and legally robust, trans-national regulatory framework, the financial stability buck stops at national laws and the supervisor’s and central bank’s duties under those laws. The financial stability stakes are too high to pass on such a responsibility lightly.
In banking, while the home and host authorities have some complementary interests, they also have areas of potentially diverging and conflicting interests, as well as jurisdictional limits. The Reserve Bank of New Zealand is committed to doing all it can to maintain a sound and efficient financial system in New Zealand.