New Zealand's approach to bank supervision
Journal of Financial Regulation and Compliance
ISSN: 1358-1988
Article publication date: 1 March 1999
Abstract
In the aftermath of the banking crisis in South‐East Asia, the International Monetary Fund (IMF) has recommended that the South‐East Asian economies adopt several aspects of the New Zealand approach to bank supervision. The New Zealand approach relies heavily upon market incentives. This paper analyses three key aspects of the New Zealand supervisory regime: the removal of deposit insurance; the public disclosure regime; and the Reserve Bank of New Zealand's supervisory responsibilities. In this paper, we argue that this supervisory regime is built on weak foundations, and therefore, it should not be emulated by other economies.
Citation
Turner, J. and Oyelere, P. (1999), "New Zealand's approach to bank supervision", Journal of Financial Regulation and Compliance, Vol. 7 No. 3, pp. 250-255. https://doi.org/10.1108/eb025013
Publisher
:MCB UP Ltd
Copyright © 1999, MCB UP Limited