Regulation and governance in the non-bank financial sector: Lessons from New Zealand
Journal of Banking Regulation, 2015, vol. 16, issue 4, 289-305
This article uses the example of the collapse of the finance company sector in New Zealand in 2006–2010 to illustrate the problems with light touch regulation and a reliance on good governance to ensure financial stability. It shows two major governance failures, the first in the governance of the sector by the authorities and the second, serious failures in corporate governance by the firms involved. Although a light touch may assist economic development it also increases fragility. New Zealand has now switched to a greater emphasis on regulation and to a better alignment of incentives to ensure good governance. Although other countries might consider implementing aspects of its new bank resolution regime, most are opting for considerably more regulation and compliance costs.
References: Add references at CitEc
Citations Track citations by RSS feed
Downloads: (external link)
http://www.palgrave-journals.com/jbr/journal/v16/n4/pdf/jbr201423a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/jbr/journal/v16/n4/full/jbr201423a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pal:jbkreg:v:16:y:2015:i:4:p:289-305
Ordering information: This journal article can be ordered from
Access Statistics for this article
Journal of Banking Regulation is currently edited by Dalvinder Singh
More articles in Journal of Banking Regulation from Palgrave Macmillan
Series data maintained by Sonal Shukla ().