Clearly, the process of integrating different economies is an arduous one, involving not only the surrendering of a national monetary policy but also a process of integrating the real economy. In Europe this process took almost half a century, from the first pro-European declaration to the full integration of monetary policy in the European monetary union.
Also, it is only natural that banks owned by foreign parent banks should seek to base any internal models for New Zealand capital on models developed within their parent banks. However, where this is the approach taken, the New Zealand banks will still need to satisfy the Reserve Bank that those models are appropriate for New Zealand circumstances.