Evaluation of post-GFC policy response of New Zealand: non-banking perspective
Journal of Financial Regulation and Compliance
ISSN: 1358-1988
Article publication date: 4 November 2014
Abstract
Purpose
The purpose of this study is to explore whether the present measures being taken by the New Zealand (NZ) government are strengthening its non-banking sector effectively to address the recent financial crisis and ensure better financial stability to the economy.
Design/methodology/approach
The basic methodology used in this paper is the “documentary research method”. For this study, data has been collected from various published sources; e.g. The Bulletin, the Financial Stability Report and other publications of the Reserve Bank of NZ, publications by Statistics NZ and a number of NZ government Ministries, and some newspapers and magazines, etc.
Findings
We find that the NZ government is revamping the non-banking sector by introducing a prudential regime. However, we also find some gaps in the existing regulatory systems that need to be addressed to ensure soundness in the total system.
Research limitations/implications
The basic limitation of documentary research will be applicable to this study. Further research may be carried out to investigate the policy responses of government from banking, corporate governance and other regulatory perspectives.
Practical implications
Our study identifies some gaps in current policy responses along with some suggestions for the future that may be taken into consideration by the respective policy-makers to further strengthen the support provided by policy responses to financial crises.
Originality/value
Our study provides a unique insight into the evaluation of post-GFC policy response and its effectiveness with regard to non-banking sector and, to our knowledge, the first of its kind in NZ in the post-global financial crisis period.
Keywords
Acknowledgements
This paper is under the Research Grant, 2013 of Eastern Institute of Technology, New Zealand, and special thanks are owed to the Head of Business School and EIT Research Grant Panel for providing the necessary financial support to carry out the research.
Citation
Yahanpath, N. and Islam, M. (2014), "Evaluation of post-GFC policy response of New Zealand: non-banking perspective", Journal of Financial Regulation and Compliance, Vol. 22 No. 4, pp. 328-338. https://doi.org/10.1108/JFRC-09-2013-0029
Publisher
:Emerald Group Publishing Limited
Copyright © 2014, Emerald Group Publishing Limited