Reserve Bank of New Zealand Bulletin articles
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December 2008 (Vol. 71, no 4)
Download the complete issue of the December 2008 Bulletin (PDF 4MB)
Articles
Editor’s Note (PDF 83KB)
Evolution of the Reserve Bank’s liquidity facilities (PDF 142KB)
In this article, the evolution of the liquidity management regime over the past few years is detailed. This evolution is placed in the context of the prevailing financial market stresses. The robustness and adaptability of the system to a variety of shocks is discussed. Particular mention is made of the steps taken in the past year to ensure the stability of the New Zealand financial system.
The global financial crisis and its transmission to New Zealand – an external balance sheet analysis (PDF 96KB)
Recent global events have underscored how instability in the international
financial system can have a pervasive impact on the world economy. Starting in
the middle of 2007, deteriorating credit quality in the US residential mortgage
market served as the catalyst for a systemic financial crisis that has spread
far beyond its original source, including to New Zealand.
This article aims
to shed light on the channels through which these global developments have
affected the domestic financial system and real economy, principally by
examining the scale and composition of the international assets and liabilities
that comprise New Zealand’s external balance sheet.
The Reserve Bank’s payment system oversight role applied to settlement risk in the retail payment system (PDF 164KB)
The Reserve Bank oversees the payment system for the purpose of promoting the maintenance of a sound and efficient financial system. Consistent with the Reserve Bank’s relatively light-handed payment system oversight powers, the Reserve Bank’s approach is to be clear about its objectives and to encourage industry to develop solutions towards these objectives. However, as other central banks have found, industry-led solutions cannot always be delivered, or delivered in a timely manner. Consequently, the Reserve Bank is stepping up engagement with industry to expedite projects that help meet our policy objectives. A current payment system oversight issue for the Reserve Bank is settlement risk in the retail payment system. Empirical analysis shows that routing high-value transactions through the retail system significantly increases end-of-day inter-bank exposures. This article assesses this risk and possible ways to address settlement risk in the retail payment system.
New legislation for regulation of non-bank deposit takers (PDF 63KB)
This article provides a broad overview of the regulatory framework for
non-bank deposit takers and the role of the Reserve Bank of New Zealand as the
sector’s prudential regulator. This new responsibility is embodied in the
amendments made to the Reserve Bank of New Zealand Act and passed by Parliament
in September 2008.
The new regime requires non-bank deposit takers to comply
with minimum prudential standards to be issued by the Reserve Bank. These
standards will comprise the core prudential regime for the sector, and include
credit rating, capital, and liquidity requirements, and restrictions on related
party exposures.
Results from our recent survey of Bulletin readers (PDF 42KB)
This note summarises the results of our August 2008 survey of
Bulletin readers. Overall, we received very positive
feedback.
Survey respondents found Bulletin articles to be readable,
topical, good quality and in-depth. We also received a number of useful
suggestions on the Bulletin’s content and style, which we will
take on board. In particular, we are pleased to announce that from the September
2009 issue, we will provide printed copies of the Bulletin free of
charge.
The views expressed are those of individual authors and do not necessarily reflect official positions of the Reserve Bank of New Zealand. Articles published in this Bulletin may not be wholly or substantially reproduced without the permission of the Reserve Bank of New Zealand. Data, brief extracts from articles, and other material appearing in the Bulletin, may be used without restriction provided due acknowledgement is made of the source.
