Evaluation of post-GFC policy response of New Zealand: non-banking perspective

Author:Noel Yahanpath, Mahbubul Islam
Position:School of Business, Eastern Institute of Technology, Napier, New Zealand; School of Business, Eastern Institute of Technology, Napier, New Zealand and Department of Accountancy and Finance, University of Otago, Dunedin, New Zealand
Pages:328-338
SUMMARY

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... (see full summary)

 
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Evaluation of post-GFC policy
response of New Zealand:
non-banking perspective
Noel Yahanpath
School of Business, Eastern Institute of Technology, Napier, New Zealand, and
Mahbubul Islam
School of Business, Eastern Institute of Technology, Napier, New Zealand
and Department of Accountancy and Finance, University of Otago,
Dunedin, New Zealand
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 nancial crisis and ensure better nancial 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 nd that the NZ government is revamping the non-banking sector by introducing a
prudential regime. However, we also nd 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 identies 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 nancial 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 rst of its
kind in NZ in the post-global nancial crisis period.
Keywords New Zealand, Non-banking sector, Policy remedial measures, Post-GFC,
Regulatory system, Policy gap, Policy response
Paper type Literature review
1. Introduction
Some questions that are circulated when any kind of nancial crisis happens include:
what causes a nancial crisis to happen? What makes it spread throughout the national
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 nancial support to carry out the research.
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1358-1988.htm
JFRC
22,4
328
Journal of Financial Regulation and
Compliance
Vol. 22 No. 4, 2014
pp. 328-338
© Emerald Group Publishing Limited
1358-1988
DOI 10.1108/JFRC-09-2013-0029

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