We also believe it reduces the moral hazard risks associated with conventional banking supervision, and strengthens the effectiveness of market discipline on banks. The fact that the New Zealand banking system is currently one of the healthiest in the world - with high asset quality, sound risk management practices and good capitalisation - bears testimony to this.
I believe therefore that it is high time for us to concern ourselves with how best to revive the global economy, while consolidating the achievements of the financial reforms implemented by the policy authorities of individual countries in the wake of the global financial crisis from a medium and long- term perspective.