And the Securities Commission is focused on improving the efficiency and fairness of the markets for securities (widely defined) of entities that raise funds in New Zealand. This approach recognises that in New Zealand systemic issues are central in the supervision of banks, whereas in non-bank financial services consumer-protection issues are more important.
There has been a strong presumption in economic policy development in New Zealand over the last decade or so that market forces generally produce better outcomes than those arising from bureaucratic rules and regulations. Our approach to banking supervision reflects this.