Regulatory Alerts2022-02-27
Treasury and Reserve Bank comment on closer integration of trans-Tasman banking regulation
The New Zealand Treasury and Reserve Bank issued a joint paper to the Minister of Finance recommending the 'enhanced home-host supervision' model for integrating trans-Tasman banking regulation. The regulators explicitly rejected the 'APRA-as-supervisor' model, arguing it would relinquish New Zealand's decision-making rights over prudential policy and fail to adequately protect national interests during a crisis. The document advises developing the preferred model under current law and initiating a review to assess broader financial market integration benefits before the scheduled February 2005 meeting with the Australian Treasurer.
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