New Zealand economy feeling the heat

Reserve Bank of New Zealand has issued 4 statements since August 21, 2008 with eac one restating – its financial system is safe and there is nothing to worry. The statement dates are:

Meanwhile on 3 Sep 2008, it has also assumed new responsibilities:

The Reserve Bank Amendment Bill (No 3) was passed today making the Reserve Bank the regulator of non-bank deposit takers. Dr Bollard said he is confident that the new legislation will provide a strong basis for confidence in the deposit-taking sector, which includes finance companies, building societies and credit unions.

The Bank’s role will be to require information from trustees of deposit takers, to develop and enforce minimum prudential and governance requirements and to administer credit rating requirements.

The impact of financial channel of coupling just getting bigger in size and scope. See this India case as well.

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