A team from the International Monetary Fund (IMF) arrives in New Zealand on Tuesday to begin a Financial Sector Assessment Programme on this country's financial system.
The last time the IMF ran a Financial Sector Assessment Programme on New Zealand was in 2004, 12 years ago.
Finance Minister Bill English is warning there are a number of areas where the IMF may identify differences between New Zealand’s arrangements and international standards. But, English maintains, good reasons exist for these differences.
"They include the structure of our financial system and the regulatory and supervisory system the Reserve Bank has developed to meet New Zealand conditions," says English.
"We will be interested to hear what the IMF has to say about New Zealand’s regulatory and supervisory framework and will carefully consider any recommendations it makes.”
English says the IMF team is scheduled to make two visits to New Zealand. This week's will focus on the banking and insurance sectors. Then a November visit will review New Zealand’s securities regime. The final IMF report is expected to be issued in April or May 2017.
“New Zealand has a stable, well-capitalised banking sector that held up well in the face of the global financial crisis and I expect the IMF to comment favourably on both it and the improvements to the regulatory landscape since its last report,” English says.