GETTING THE RIGHT BALANCE BETWEEN REGULATION AND GOVERNANCE IN THE NON-BANK FINANCIAL SECTOR

Journal of Governance and Regulation

David G Mayes¹ 

关键词: Regulation;    Governance;    Non-Banking Financial Institution;   

DOI  :  10.22495/jgr_v1_i3_c2_p5

学科分类：社会科学、人文和艺术（综合）

来源: Virtus Interpress

【 摘 要 】

This paper uses the example of the collapse of the finance company sector in New Zealand in 2006-2010 to illustrate the problems with light touch regulation and a reliance on good governance to ensure financial stability. It shows two major governance failures, the first in the governance of the sector by the authorities and the second, serious failures in corporate governance by the firms involved. While a light touch may assist economic development it also increases fragility. New Zealand has now switched to a greater emphasis on regulation and to a better alignment of incentives to ensure good governance. While other countries might consider implementing aspects of its new bank resolution regime most are opting for considerably more regulation and compliance costs.

【 授权许可】

CC BY-NC