But we will continue to explore digital currencies; for our benefit and for the benefit of New Zealand’s financial system. References Deloitte and Monetary Authority of Singapore (2017) ‘The future is here. Project Ubin: SGC on distributed ledger’. Fung, B, Hendry, S and W Weber (2017) ‘Canadian Bank Notes and Dominion Notes: lessons for digital currencies’, Bank of Canada Staff Working Paper 2017-5.
No better example exists than the banking agencies’ adoption of a risk assessment approach for evaluating capital adequacy for interest rate risk. Early on in that rulemaking process, supervisors recognized that a number of banking institutions had internal models for measuring interest rate risk that were much more sophisticated than any possible standardized regulatory model.