Green Party on RBNZ’s Basel III capital adequacy reforms

Press Release – Green Party

“The Green Party welcomes the Reserve Bank’s intention to implement higher prudential requirements for our banking sector as set out by the Basel III global regulatory standards,” said Green Party Co-leader Dr Russel Norman today.8 November 2011

Green Party comment on RBNZ’s Basel III capital adequacy reforms

“The Green Party welcomes the Reserve Bank’s intention to implement higher prudential requirements for our banking sector as set out by the Basel III global regulatory standards,” said Green Party Co-leader Dr Russel Norman today.

“Higher capital adequacy ratios and a higher quality of bank capital will enhance the resilience of our financial system reducing the likelihood of our banks ever failing.

“The small additional cost of borrowing these higher capital ratios will entail are justified if it means the taxpayer is less likely to have to bail out banks that are too big to fail.

“Greater competition and local ownership of our banking sector will also enhance its resilience. The Green Party will strengthen Kiwibank by allowing it to retain its earnings and giving it preference to become the Government’s banker,” Dr Norman said.

The Green Party’s Green Jobs Initiative laid out their plans for capital market reform including empowering the Reserve Bank with more tools to manage monetary and prudential policy beside the Official Cash Rate. That document can be found here: http://www.greens.org.nz/sites/default/files/gp_jobsbooklet_20final.pdf

ENDS

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