IMF finds financial sector in good shape

Finance Minister Michael Cullen and Commerce Minister Margaret Wilson today described as “positive” the IMF Financial Sector Assessment Programme (FSAP) finding that New Zealand banking system is efficient and adequately supervised .

Dr Cullen said a number of suggestions to enhance banking supervision were being considered carefully by the Reserve Bank and that the IMF had welcomed efforts to improve co-operation with Australian authorities on banking regulation.

"I take this as a positive endorsement of the trans Tasman banking work agreed to in my bilateral with Australian Treasurer Peter Costello earlier this year," he said.

Margaret Wilson said the IMF had endorsed the government's four stage securities law reform programme.

"The completion of stages one and two - the introduction of the Takeovers Code and the Securities Markets and Institutions Bill - assisted in the generally positive review of our securities law," Margaret Wilson said.

“Most of the report's recommendations will be picked up in the third and fourth stages of the programme: the forthcoming Securities Trading Law Reform Bill, expected to be introduced into the House later this year and the review of the Securities Act to begin once the bulk of the securities trading law reform is complete,” Margaret Wilson said.

“This would include consideration of the regulation of collective investment schemes and improved oversight of financial intermediaries.”

The report will available on the IMF website and there are links to it on the Reserve Bank of New Zealand (www.rbnz.govt.nz) and the Ministry of Economic Development (www.med.govt.nz) websites.

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