The Reserve Bank’s policy on outsourcing by banks
This article explains the Reserve Bank of New Zealand’s policy on outsourcing by banks. Banks in New Zealand typically outsource a range of business activities, both to independent and to related-party service providers, and both domestically and offshore. The predominance in our banking system of banks owned by offshore parent banks, who provide important services to their subsidiaries, means that cross-border, related-party outsourcing is of particular relevance. The outsourcing policy requires a large bank’s board to maintain legal and practical control over any outsourced functions such that the bank is able to continue to play its key role of supporting financial activity in the economy, both under normal circumstances and (particularly) under stress. The Reserve Bank applies the policy with some flexibility to suit the circumstances of individual banks. The policy thus ensures that the banking system retains the ability to avert distress, and underpins the Reserve Bank’s ability to manage a financial crisis, while enabling the financial system to enjoy the benefits of foreign bank participation.
Volume (Year): 70 (2007)
Issue (Month): (June)
|Contact details of provider:|| Postal: P.O. Box 2498, Wellington|
Phone: 64 4 471-3767
Fax: 64 4 471-2270
Web page: http://www.rbnz.govt.nz
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alan Bollard, 2004. "Supervising overseas-owned banks: New Zealand's experience," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 67, September.
- Leslie Hull, 2002. "Foreign-owned banks: Implications for New Zealand's financial stability," Reserve Bank of New Zealand Discussion Paper Series DP2002/05, Reserve Bank of New Zealand.
- Alan Bollard, 2005. "Bank regulation and supervision in New Zealand: recent and ongoing developments," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 68, June.
- Edward J. Kane, 2006.
"Confronting Divergent Interests in Cross-Country Regulatory Arrangements,"
World Scientific Book Chapters,
in: Cross-Border Banking Regulatory Challenges, chapter 18, pages 265-285
World Scientific Publishing Co. Pte. Ltd..
- Edward J. Kane, 2006. "Confronting divergent interests in cross-country regulatory arrangements," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 69, pages 12p., June.
- Edward J. Kane, 2005. "Confronting Divergent Interests in Cross-Country Regulatory Arrangements," NBER Working Papers 11865, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:nzb:nzbbul:june2007:4. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Reserve Bank of New Zealand Knowledge Centre)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.