Finance Minister Bill English expects IMF to identify differences between NZ’s arrangements and international standards in Financial Sector Assessment Programme

Finance Minister Bill English expects IMF to identify differences between NZ’s arrangements and international standards in Financial Sector Assessment Programme

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.”

Reserve Bank quirks to international norms among similar, developed countries include its Open Bank Resolution Policy and NZ's lack of deposit insurance.

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. 

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

We welcome your comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.

2 Comments

Comment Filter

Highlight new comments in the last hr(s).

Dissertation Help - The IMF has changes lots of it policies which were in 2004. English may tell NZ authorities about what they should be careful of but there might be many things which he doesn’t know since after 2004 IMF have been changing its policies. Mostly they would give up the IMF loan to NZ but if you are not able to pay them back then there are many policies which they can apply in your country.

I imagine that it is the "quirks and differences" that provide the ammunition for the international tax avoiders and money launderers. Aren't we told that the only way to attack international tax avoidance and money laundering is a coordinated world wide approach. Time for NZ to fall in line and English's attempts to excuse ( and preserve) our current system has the appearance of aligning him (and his puppet master, Key) with the dodgy side of the over entitled top 0.1% of the world and against the interests of the vast majority of New Zealanders.

Your access to our unique content is free - always has been. But ad revenues are diving so we need your direct support.

Become a supporter

Thanks, I'm already a supporter.