RBNZ implements new regulatory regime
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Tim Neary
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2/03/2010 12:00:00 AM
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The Reserve Bank of New Zealand will force non-bank deposit takers to obtain credit ratings, as part of a new regulatory regime designed to improve the resilience of the country's non-bank sector to severe movements in financial markets.
Reserve Bank governor Alan Bollard said the credit ratings would help investors distinguish between deposit taking institutions based on a risk reward trade-off, according to a report in The Australian Financial Review.
"It's up to the investor to make the final decision as to where to invest their money and credit ratings are a very useful tool to help them," he said.
The RBNZ took control of regulating non-bank deposit takers in late 2008.
More than 20 non-bank institutions collapsed during the financial crisis, wiping out hundreds of millions in savings.
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