Regulating Banks through Public Disclosure-The Case of New Zealand
New Zealand has adopted a system of market-based bank regulation to try to reduce moral hazard and fiscal risk for the government. The system introduces new elements of public disclosure and enhanced director responsibility. Although the central ba...
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| Format: | Viewpoint |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/1996/10/693107/regulating-banks-through-public-disclosure-case-new-zealand http://hdl.handle.net/10986/11606 |
| Summary: | New Zealand has adopted a system of
market-based bank regulation to try to reduce moral hazard
and fiscal risk for the government. The system introduces
new elements of public disclosure and enhanced director
responsibility. Although the central bank still monitors
banks, it now uses only publicly disclosed information.
Judging initial reactions, the author argues that banks find
the new approach more demanding than the traditional one. |
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