IMF Staff Country Reports

New Zealand: Financial Sector Assessment Program: Detailed Assessment of Observance-Basel Core Principles for Effective Banking Supervision

May 10, 2017

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New Zealand: Financial Sector Assessment Program: Detailed Assessment of Observance-Basel Core Principles for Effective Banking Supervision, (USA: International Monetary Fund, 2017) accessed September 18, 2024

Summary

This paper presents an assessment of Observance of the Basel Core Principles for Effective Banking Supervision (BCP) in New Zealand. The supervisory approach of the Reserve Bank of New Zealand (RBNZ) reflects the characteristics of the local banking industry and the authorities’ goal to limit moral hazard by relying on market discipline and not offering deposit insurance. Banks offer traditional products in a highly concentrated market. Since the most recent Financial Sector Assessment Program, the RBNZ has increased attention to strengthening regulatory discipline. The current approach to supervision is limited by the heavy weight the RBNZ places on market discipline compared with regulatory discipline. Better compliance with the BCP and enhanced effectiveness of the RBNZ three-pillar approach are recommended.

Subject: Bank supervision, Banking, Capital adequacy requirements, Credit risk, Financial regulation and supervision, Liquidity risk, Market risk, Operational risk

Keywords: Australia and New Zealand, Bank supervision, Banking group, CR, Credit risk, Credit risk, Disclosure statement, Global, Incorporated bank, ISCR, Liquidity risk, Market risk, Operational risk, Registered bank, Risk management, Risk profile, Senior management

Publication Details

  • Pages:

    222

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Country Report No. 2017/120

  • Stock No:

    1NZLEA2017008

  • ISBN:

    9781475599930

  • ISSN:

    1934-7685

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