How much harmonisation in global finance? Let’s turn to my second example: global finance and regulatory harmonisation. Here, focused harmonisation and more diversity could also be applied. This statement may surprise some of you, as the Basel Committee on Banking Supervision has just finalised the Basel III agreement after eight years of global cooperation to devise the complex set of rules.
Debt to income has been increasing in New Zealand over the past 35 years, with only a modest dip following the GFC (Figure 3). Therefore, households are still vulnerable to falls in income affecting their ability to service their debt. 7  As mentioned earlier, LVR restrictions help us manage the loss given default in a period of widespread default on mortgage lending.