WILLING TON: More importantly the NZ banking system operates under a light-handed regulatory regime. Under this regime, bank directors are required to attest that their banks are compliant with the Reserve Bank’s regulatory requirements.
The central bank accepts these attestations without reviewing, examining or auditing the process.
In other words, the health of the NZ economy is highly dependent on the ability of the 30 ANZ, ASB, BNZ and Westpac directors to understand, monitor and confirm their companies are fully compliant.
This is a demanding challenge for directors, particularly in an environment where financial organisations are using more and more complex, exotic, synthetic and derivative products.
New Zealand governments placed little emphasis on direct bank regulation and supervision prior to the late 1980s.
