Explanations of complicated phenomena are rarely clear cut and simple, and each of the three classes of explanations I have described probably contains elements of truth. Nevertheless, sorting out the relative importance of these explanations is of more than purely historical interest.
The Reserve Bank’s disclosure requirements for banks are overlaid on top of financial reporting obligations in the Financial Markets Conduct (FMC) Act 2013 and Financial Reporting Act 2013, which are enforced by the Financial Markets Authority (FMA). Under those Acts banks must prepare annual financial statements in accordance with generally accepted accounting practices.