Reserve Bank Email Service
Date 19 December 2008
December 2008 Reserve Bank Bulletin released
The Reserve Bank today released the December 2008 issue of the Reserve Bank of New Zealand Bulletin.
This edition of the Bulletin is built around the theme of liquidity and New Zealand's financial markets.
The first article discusses the evolution of the Reserve Bank's liquidity management arrangements over the past few
years. This evolution includes the measures introduced this year as the global financial system turmoil deepened. The
arrangements are now more robust and adaptable to a variety of stresses, including those the economy currently faces.
The second article explores how instability in the international financial system spread far beyond its original source
in the US subprime mortgage market, including to New Zealand. The article discusses the key role of New Zealand's debt
to offshore investors - a substantial part of which is due to local banks raising funds offshore for lending in New
The existence of settlement risk is one reason why banks need to ensure they have adequate liquidity resources at all
times. The third article looks at settlement risk in the retail payment system and how the Reserve Bank is addressing it
through its payment system oversight activities.
The fourth article explains the new regulatory framework for non-bank deposit takers.
Finally, the edition includes the results of the Reserve Bank's 2008 survey of Bulletin readers.
You can read the Bulletin at the following link: http://www.rbnz.govt.nz/research/bulletin/index.html