I’ll give three brief examples where we’ve used the flexibility in global standards to adapt to local conditions. •  First, farm lending, and especially dairy farming, accounts for a large share of risks faced by New Zealand banks.
We’ve adapted the Basel capital framework to account for the high correlation in bank farm lending losses, and the vulnerability of the New Zealand farm sector to shifts in a narrow subset of global commodity prices. 2  BIS central bankers’ speeches  •  Second, our banks have historically relied on short-term funding from offshore counterparties.