Over recent years, our regulatory structure has been closely aligned to a public policy approach that recognises that open and competitive financial markets are desirable. Within this, all of the key areas where private sector failure may occur have been covered in a way that meets our circumstances.
Hence, the Reserve Bank is responsible for the maintenance of the financial system’s soundness and efficiency, with our attention focused on the banking sector, where any systemic problems, if they were to occur, would arise. The Commerce Commission has responsibility for protecting the consumer against exploitation and unfair trading.