Certainly, freeing banks from political interference in their credit decisions is very desirable, and strengthening ‘rules-based’ banking supervision is one possible way to reduce the risks of future problems in the banking system.
BIS Review 47/2000  2  But we in New Zealand are not persuaded that strengthening ‘rules-based’ banking supervision is the only way to proceed, or indeed is even necessarily the best way to proceed in all circumstances. When we reviewed what we were doing in banking supervision in the early nineties, we became concerned.