New Outsourcing Rules for Banks
The Reserve Bank has introduced a set of requirements on outsourcing. Under the new policy, outsourcing is permitted so long as it does not undermine a large bank's ability "to continue to provide core liquidity, payment and transaction services both in good times and under stress." The Reserve Bank argues that while the outsourcing of banks' business functions is increasingly common and often a sensible business practice, it can expose banks and the financial system to new or increased risk.
You can access the new policy at: http://www.rbnz.govt.nz/finstab/banking/outsourcing/index.html, together with a Q&A from: http://www.rbnz.govt.nz/finstab/banking/outsourcing/2034681.html |
Policy Review: Economic Development
Better coordination between the agencies responsible for economic development has been recommended following a review of the government's various economic, industry and regional development policies. The review, undertaken by the Ministry of Economic Development (MED), was designed to determine whether the government's business assistance programmes delivered by NZ Trade and Enterprise (NZTE) were effective.
In general terms, it concluded they were working reasonably well, despite having small budgets, in relative terms, compared with similar programmes overseas. Nevertheless, it was also evident that the rising number of projects - currently exceeding fifty - was introducing considerable complexity, not least around the issues of project priorities and accountability. There was also a need for greater clarity between the roles of MED, MFAT (Ministry of Foreign Affairs and Trade and NZTE.
The report identified three interrelated "opportunities for action" which MED predicts would produce immediate leverage on the government's ability to deliver policies and programmes:
- confirmation of the roles and responsibilities for industry and regional development policy between MED, MFAT and NZTE through an appropriate three-way consultation process;
- rearrangement of the budget structure (documented through the Estimates and the NZTE Output Plan) to increase clarity and directions so that there is a more unifying framework for objectives and interventions; and
- a greater focus on higher-impact projects (i.e., on those with the best returns).
The report also noted that the various regional economic development agencies were proving to be "very efficient" in working with small business "provided they have the capability and there are clear criteria and systems to ensure appropriate targeting".
The Review document can be downloaded from: http://www.med.govt.nz/irdev/econ_dev/policy-review/report/report.pdf |
Contact for Enquiries
The Ministry of Agriculture and Forestry
Pastoral House
25 The Terrace
PO Box 2526, Wellington
Tel: +64 4 894 0100
Fax: +64 4 894 0720
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