DOCSLIB.ORG

ANZ Banking Group NZ and National Bank of NZ

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
ANZ Banking Group NZ and National Bank of NZ Public version Application by ANZ Banking Group New Zealand Limited for clearance of a proposed business acquisition 13 August 2003 Public version COMMERCE ACT 1986: BUSINESS ACQUISITION SECTION 66: NOTICE SEEKING CLEARANCE Date: 13 August 2003 The Registrar Business Acquisitions and Authorisations Commerce Commission PO Box 2351 WELLINGTON Pursuant to s66(1) of the Commerce Act 1986 notice is hereby given seeking clearance of a proposed business acquisition. Public version Contents 1. Executive Summary..................................................................................................... 8 • Introduction • A dynamic industry • No substantial lessening of competition • Conclusion PART I: THE TRANSACTION DETAILS 2. The business acquisition The business acquisition for which the clearance is sought ....................................... 11 3. The person giving notice Who is the person giving this notice ........................................................................... 11 4. Confidentiality Confidentiality of fact................................................................................................... 11 Confidentiality of specific information contained in the application ............................. 11 5. Details of the participant Who are the participants? ........................................................................................... 12 Who is interconnected or associated with each participant ........................................ 13 • ANZ • The National Group Does a participant or any other interconnected body corporate thereof already have a pecuniary interest in or is entitled to, any shares or other pecuniary interest in another participant? ................................................................................................................. 13 Links, formal or informal, between any participant/s including any interconnected bodies corporate and other persons identified above and its/their existing competitors in each market......................................................................................................................... 14 • ISL • VNZL • MasterCard International • EFTPOS and Credit Card Payment Services • Other Do any directors of the acquirer also hold directorships in any other companies which are involved in the markets in which the target company/business operates? ........... 17 5150101 2 Public version What are the business activities of each participant? ................................................. 20 What are the reasons for the proposal and the intentions in respect of the acquired or merged business?....................................................................................................... 21 PART II: IDENTIFICATION OF THE MARKETS AFFECTED 6. Markets ....................................................................................................................... 21 • Product markets • Geographical scope 7. Horizontal aggregation Horizontal aggregation: are there any markets in which there would be an aggregation of business activities as a result of the proposed acquisition? ............... 24 8. Differentiated products Are the products identified above standardised or differentiated?.............................. 24 9. Vertical integration Vertical integration: will the proposal result in vertical integration between firms involved at different functional levels? ........................................................................ 25 10. Previous acquisitions Identification of all previous proposed acquisitions involving either participant .......... 25 PART III: CONSTRAINTS ON MARKET POWER BY EXISTING COMPETITION 11. Existing competition In the market or market(s), who are suppliers of competing products including imports? ...................................................................................................................... 26 • Overview of existing competition • Core banking market • Other financial services • A dynamic market • Comment on safe harbours • Horizontal aggregation • Institutional corporate market • Middle corporate market • Credit card issuing market • Mortgage market • Personal loans market • Managed funds market 5150101 3 Public version • Rural banking market • SME market • Credit/debit merchant acquiring services market • Term deposit/savings account market • Transactions accounts market 12. Other considerations Please identify any firms that are not currently producing the product in the market, but could enter the market quickly in response to an attempt by suppliers to raise prices or reduce output or quality (new entrants) ........................... 48 • Introduction • Institutional corporate market • Middle corporate market • Credit card issuing market • Mortgage market • Rural market • SME banking market • Personal loans market • Term deposit/savings account market • Transaction accounts market Estimate the productive capacity that such new entrants potentially could bring to the market ...................................................................................................... 50 Please indicate the extent to which imports provide a constraint on domestic suppliers...................................................................................................................... 50 • Institutional corporate market • Middle corporate market • Other markets To what extent is the product exported?..................................................................... 50 Is National Bank a vigorous and effective competitor? ............................................... 51 13. Conditions of expansion Which conditions would be likely to act as a barrier to the expansion of existing competitors? ............................................................................................................... 51 • Introduction • Institutional corporate market • Middle corporate market • Credit card issuing market • Mortgage market • Rural market • SME market • Deposits • Debt/financing • Transactions 5150101 4 Public version • Merchant acquiring services • Personal loans market • Term depositions/savings account market • Transactions accounts market Businesses that already supply the market that could increase supply of the product concerned in the geographic market.............................................................. 57 • Introduction • Specific examples • Credit card issuing market • Rural market Of the conditions of expansion listed above, which do you consider would influence the business decision in each case to increase supply? ............................................ 58 How long would you expect it to take for supply to increase in each case? ............... 58 In your opinion, to what extent would the possible competitive response of existing suppliers constrain the merged entity? ....................................................................... 58 To what extent do you consider that the merged entity would be constrained in its actions by the conduct of existing competitors in the markets affected? .................... 59 14. Coordinated market power Characteristics of the market that facilitate or impede coordination effects................ 59 Characteristics of the market that facilitate or impede the monitoring and enforcement of coordinated behaviour by market participants ................................... 59 Evidence of price coordination, price matching or price following by market participants.................................................................................................................. 59 Reasons why the transaction will not increase the risk of coordinated behaviour in the relevant markets ................................................................................................... 60 PART IV: CONSTRAINTS ON MARKET POWER BY POTENTIAL COMPETITION 15. Conditions of entry Conditions likely to act as a barrier to entry ................................................................ 61 • Introduction • Regulatory barriers • New Zealand payment system • Lower value payments • Higher value payments • Institutional corporate market • Middle corporate market • Credit card issuing market 5150101 5 Public version • Mortgage market • Rural market • SME market • Personal loan market • Term deposit/savings account market • Transactions accounts market Business that do not currently supply the market(s) which could supply the markets ................................................................................................................. 67 What business conditions of entry do you consider would influence the business decision to increase supply in each case?.................................................................. 67 16. Likelihood, sufficiency and timeliness of entry How long would you expect it to take for supply to increase in each case? ............... 67 Given the assessed entry conditions, and the costs that these might impose on an entrant, is it likely that a potential entrant would consider entry profitable at pre-acquisition prices?................................................................................................ 68 Would the threat of new entry be at a level and spread of sales that is likely to cause market participants to react in a significant manner? ....................................... 68 What conditions of entry would influence the business decision to enter the market by setting up from scratch?........................................................................................
Load more

Recommended publications
  • The Role of Financial Deregulation in the Geographical Restructuring Of
    I 1¡ . t r'1,1 GLOBAL FINA¡ICEILOCAL CRISIS Tm Ror,n or Fnv.l¡tcrAL Dnnpcu¡,.tuoN IN rm GnocRApErcAL RnsrnucruRrNc or Ausrn¡,r.lx F¡,nn,mrc AI\D F,mu cnpurr: Tm c¿.sn or Ke¡vclRoo Isr,,lxo by Neil Argent BA Hons The University of Adelaide A Thesis submitted for the degree of Doctor of Philosophy at The University of Adelaide June 1997 tt TABLE OF CONTENTS Page Title Page I Table of Contents ü List of Tables vi List ofFigures vll Abstract )o Deolaration )(lr Aoknowledgements )qu CIIAPTER ONE: INTRODUCTION I l.l Introduction I 1.2 Research Aims and Objectives and Author's Motives J 1.3 Thesis Outline 6 1.4 Conclusion I PART ONE CHAPTER TWO: GLOBALISATION, REGI]LATION AND TTIE RI,RAL: TOWARDS A TIIEORETICAL A}IALYSIS OF CONTEMPORARY RI.'RAL AI.ID AGRICI ]LTTJRAL CITANGE 9 2.1 Introduction 9 2.2 Scalng Change: The Rural in the Global and the Global in the Rural? l0 2.3 Rural and Agrarian Restruoturing: Evohing Scales and Dimensions of Change t4 2.3.1 Introduction t4 2.3.2Peasant, Proletariat and the Fin de Siécle: l9th and 20th Century Perqpectives l5 2.3.3 Structure and Contingency, Stability and Crisis: Regulationist Approaches to Agrarian Change 26 2.3.4 T\e Political Eoonomy of Farm Credit 38 2.3.5T\e Man on the Land and the Invisible Farmer: psmini politioal st Critiques of the Eoonomy of Agrioultrue 42 2.3.6T\e Cubist State: Towards a Non-Esse,lrtialist Account ofthe Capitalist State 45 2.4 Conclusion 49 CHAPTER THREE: THE AGRICTJLTIJRE.FINA}ICE RELATION: A REALIST APPROACH 52 3.1 Introduction 52 3.2 Critical Realism: A Philosophical and Theoretical Exploration 52 3.2.1To Be Is Not To Be Perceived: A Realist Philosophy for the Social Soiences 52 3.2.2T\e Critical Realist Mode of Conceptualisation 62 3.
    [Show full text]
  • Offering Memorandum ANZ National Bank Limited
    Offering Memorandum ANZ National Bank Limited (incorporated with limited liability in New Zealand) as Issuer and Guarantor ANZ National (Int’l) Limited (incorporated with limited liability in New Zealand) acting through its London branch as Issuer US$10,000,000,000 Medium-Term Notes Series A Notes Due One Year or More from Date of Issue Series B Notes Due from 12 Months to 60 Months from Date of Issue ANZ National Bank Limited’s obligations as Issuer or Guarantor of the Series B Notes are Guaranteed by Her Majesty the Queen in right of New Zealand ANZ National Bank Limited (“ANZ National”) and ANZ National (Int’l) Limited (“ANZNIL”), acting through its London branch (each an “Issuer” and together, the “Issuers”), subject to compliance with all relevant laws, regulations and directives, may from time to time issue medium-term notes. Notes of ANZ National are referred to as “ANZ National Notes”, notes of ANZNIL are referred to as “ANZNIL Notes” and ANZ National Notes and ANZNIL Notes are collectively referred to as “Notes”. Notes may be issued as Series A Notes, which are due one year or more from date of issue, or as Series B Notes, which are due from 12 months to 60 months from date of issue. Series B Notes will have the benefit, directly in the case of ANZ National Notes and indirectly in the case of ANZNIL Notes, of the Crown Wholesale Funding Guarantee, dated December 23, 2008 and Supplemental Deed to the Crown Wholesale Funding Guarantee, dated February 19, 2009 (collectively, the “Crown Guarantee”) executed on behalf of Her Majesty the Queen in right of New Zealand acting by and through the Minister of Finance (the “Crown”) if a Guarantee Eligibility Certificate (as defined in the Crown Guarantee) has been issued in respect of such Notes (such Notes being referred to in this Offering Memorandum as “Crown Guaranteed Notes”).
    [Show full text]
  • New Zealand Business Number Bill 18 June 2015
    Submission to the Commerce Select Committee on the New Zealand Business Number Bill 18 June 2015 NEW ZEALAND BANKERS ASSOCIATION Level 15, 80 The Terrace, PO Box 3043, Wellington 6140, New Zealand TELEPHONE +64 4 802 3358 FACSIMILE +64 4 473 1698 EMAIL [email protected] WEB www.nzba.org.nz Submission by the New Zealand Bankers’ Association to the Commerce Select Committee on the New Zealand Business Number Bill About NZBA 1. NZBA works on behalf of the New Zealand banking industry in conjunction with its member banks. NZBA develops and promotes policy outcomes which contribute to a strong and stable banking system that benefits New Zealanders and the New Zealand economy. 2. The following fifteen registered banks in New Zealand are members of NZBA: ANZ Bank New Zealand Limited ASB Bank Limited Bank of China (NZ) Limited Bank of New Zealand Bank of Tokyo-Mitsubishi, UFJ Citibank, N.A. The Co-operative Bank Limited Heartland Bank Limited The Hongkong and Shanghai Banking Corporation Limited JPMorgan Chase Bank, N.A. Kiwibank Limited Rabobank New Zealand Limited SBS Bank TSB Bank Limited Westpac New Zealand Limited. Background 3. NZBA is grateful for the opportunity to submit on the New Zealand Business Number Bill, bill number 15-1 (the Bill). 4. NZBA would appreciate the opportunity to make an oral submission to the Committee on this Bill. 5. If the Committee or officials have any questions about this submission, or would like to discuss any aspect of the submission further, please contact: Kirk Hope Chief Executive 04 802 3355 / 027 475 0442 [email protected] 2 General NZBA fully supports the New Zealand Business Number (NZBN) initiative which will significantly help businesses to liaise with Government.
    [Show full text]
  • TSB COMMUNITY TRUST REPORT 2016 SPREAD FINAL.Indd
    ANNUAL REPORT 2016 CHAIR’S REPORT Tēnā koutou, tēnā koutou, tēnā koutou katoa Greetings, greetings, greetings to you all The past 12 months have been highly ac ve for the Trust, As part of the Trust’s evolu on, on 1 April 2015, a new Group marked by signifi cant strategic developments, opera onal asset structure was introduced, to sustain and grow the improvements, and the strengthening of our asset base. Trust’s assets for future genera ons. This provides the Trust All laying stronger founda ons to support the success of with a diversifi ca on of assets, and in future years, access to Taranaki, now and in the future. greater dividends. This year the Trust adopted a new Strategic Overview, As well as all this strategic ac vity this year we have including a new Vision: con nued our community funding and investment, and To be a champion of posi ve opportuni es and an agent of have made a strong commitment to the success of Taranaki benefi cial change for Taranaki and its people now and in communi es, with $8,672,374 paid out towards a broad the future range of ac vi es, with a further $2,640,143 commi ed and yet to be paid. Our new Vision will guide the Trust as we ac vely work with others to champion posi ve opportuni es and benefi cial Since 1988 the Trust has contributed over $107.9 million change in the region. Moving forward the Trust’s strategic dollars, a level of funding possible due to the con nued priority will be Child and Youth Wellbeing, with a focus on success of the TSB Bank Ltd.
    [Show full text]
  • Submission Productivity Commission Regulatory Institutions & Practices
    Submission to the Productivity Commission on the Regulatory Institutions & Practices Issues Paper 31 October 2013 NEW ZEALAND BANKERS ASSOCIATION Level 15, 80 The Terrace, PO Box 3043, Wellington 6140, New Zealand TELEPHONE +64 4 802 3358 FACSIMILE +64 4 473 1698 EMAIL [email protected] WEB www.nzba.org.nz Submission by the New Zealand Bankers’ Association to the Productivity Commission on the Regulatory Institutions and Practices Issues Paper About NZBA 1. NZBA works on behalf of the New Zealand banking industry in conjunction with its member banks. NZBA develops and promotes policy outcomes which contribute to a safe and successful banking system that benefits New Zealanders and the New Zealand economy. 2. The following fourteen registered banks in New Zealand are members of NZBA: ANZ Bank New Zealand Limited ASB Bank Limited Bank of New Zealand Bank of Tokyo-Mitsubishi, UFJ Citibank, N.A. The Co-operative Bank Limited Heartland Bank Limited The Hongkong and Shanghai Banking Corporation Limited JPMorgan Chase Bank, N.A. Kiwibank Limited Rabobank New Zealand Limited SBS Bank TSB Bank Limited, and Westpac New Zealand Limited. If you have any questions about this submission, or would like to discuss any aspect of it further, please contact: Kirk Hope Chief Executive Telephone: +64 4 802 3355/ +64 27 475 0442 Email: [email protected] 2 Executive Summary 3. NZBA welcomes the decision by the Productivity Commission to undertake an inquiry into regulatory institutions and practices. 4. NZBA submits that quality regulation is essential to an efficient and well-functioning economy. Poorly conceived and implemented regulation can significantly hinder innovation, productivity and ultimately economic growth.
    [Show full text]
  • Australia and New Zealand Banking Group Limited ANZ National Bank
    Level: 3 – From: 3 – Tuesday, July 21, 2009 – 08:22 – eprint6 – 4135 Intro Australia and New Zealand Banking Group Limited Australian Business Number 11 005 357 522 (Incorporated with limited liability in Australia and registered in the State of Victoria) as Issuer ANZ National Bank Limited (incorporated with limited liability in New Zealand) as Issuer and Guarantor of Notes issued by ANZ National (Int’l) Limited ANZ National (Int’l) Limited (incorporated with limited liability in New Zealand) as Issuer US$60,000,000,000 Euro Medium Term Note Programme Under the Euro Medium Term Note Programme described in this Base Prospectus (the “Programme”), Australia and New Zealand Banking Group Limited (“ANZBGL”), ANZ National Bank Limited (“ANZNBL”) and ANZ National (Int’l) Limited (“ANZNIL”) (each an “Issuer” and together the “Issuers”), subject to compliance with all relevant laws, regulations and directives, may from time to time issue euro medium term notes (the ‘’Notes”). The payment of all amounts due in respect of any Notes issued by ANZNIL will be unconditionally and irrevocably guaranteed by ANZNBL (the “Guarantor”). The Notes issued by ANZNBL or ANZNIL are not guaranteed by ANZBGL. Unsubordinated Notes (as defined below) issued by ANZBGL may have the benefit of a guarantee provided by the Commonwealth of Australia (the “Commonwealth”, and such Notes being “Commonwealth Guaranteed Notes”). Notes issued by ANZNBL or ANZNIL may have the benefit of a guarantee provided by Her Majesty the Queen in right of New Zealand acting by and through the Minister of Finance (the “Crown”, and such Notes being “Crown Guaranteed Notes“).
    [Show full text]
  • The Cost of Funds and Bank Efficiency Through Time
    THE COST OF FUNDS AND BANK EFFICIENCY THROUGH TIME David Tripe ∗ Centre for Banking Studies Massey University Palmerston North New Zealand Abstract: A super-efficiency model within Data Envelopment Analysis (DEA) was used to study the relative efficiency of New Zealand banks for the period 1996 to 2003. Evidence was found for improvement in efficiency, although it was found that this was significantly a consequence of the reduction in the general level of interest rates over the period, which reduced banks’ apparent utilisation of resources. Significant differences were found between banks in their relative efficiency. Keywords : Banking, New Zealand, Data Envelopment Analysis, super-efficiency model ∗ Contact details are E-mail: [email protected] ; phone +64 (6) 350-5799 ext 2337, fax +64 (6) 350- 5799. 1 Introduction A key choice to be made in modelling bank efficiency is in specifying the inputs and outputs of the production process: differences in the input and output variables chosen are commonly found to impact on the efficiency scores generated, while Wheelock & Wilson (1995) state that unreliable estimates of efficiency can be generated by models that omit key features of bank production. Tortosa-Ausina (2002) suggests that conclusions relative to the efficiency and potentially the competitive viability of firms in the industry could depend on the model chosen. A further problem is that key inputs and outputs may be correlated with environmental factors, so that differences in efficiency scores may reflect differences in environmental factors rather than differences in efficiency. Obvious examples of inputs or outputs to be affected by environmental factors would be (total) interest expense or (total) interest income, or other measures that reflected these, such as total expenses or total income.
    [Show full text]
  • Participant List
    Participant List 10/20/2019 8:45:44 AM Category First Name Last Name Position Organization Nationality CSO Jillian Abballe UN Advocacy Officer and Anglican Communion United States Head of Office Ramil Abbasov Chariman of the Managing Spektr Socio-Economic Azerbaijan Board Researches and Development Public Union Babak Abbaszadeh President and Chief Toronto Centre for Global Canada Executive Officer Leadership in Financial Supervision Amr Abdallah Director, Gulf Programs Educaiton for Employment - United States EFE HAGAR ABDELRAHM African affairs & SDGs Unit Maat for Peace, Development Egypt AN Manager and Human Rights Abukar Abdi CEO Juba Foundation Kenya Nabil Abdo MENA Senior Policy Oxfam International Lebanon Advisor Mala Abdulaziz Executive director Swift Relief Foundation Nigeria Maryati Abdullah Director/National Publish What You Pay Indonesia Coordinator Indonesia Yussuf Abdullahi Regional Team Lead Pact Kenya Abdulahi Abdulraheem Executive Director Initiative for Sound Education Nigeria Relationship & Health Muttaqa Abdulra'uf Research Fellow International Trade Union Nigeria Confederation (ITUC) Kehinde Abdulsalam Interfaith Minister Strength in Diversity Nigeria Development Centre, Nigeria Kassim Abdulsalam Zonal Coordinator/Field Strength in Diversity Nigeria Executive Development Centre, Nigeria and Farmers Advocacy and Support Initiative in Nig Shahlo Abdunabizoda Director Jahon Tajikistan Shontaye Abegaz Executive Director International Insitute for Human United States Security Subhashini Abeysinghe Research Director Verite
    [Show full text]
  • Rabobank New Zealand Branch Final Term Sheet Dated 3 June 2015 Medium Term Notes Due 10 June 2020
    Rabobank New Zealand Branch Final Term Sheet dated 3 June 2015 Medium Term Notes due 10 June 2020 Tranche Identifier 2015-1 Issuer/Bank Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank New Zealand Branch) Joint Lead Managers (JLMs) ANZ Bank New Zealand Limited (ANZ) Westpac Banking Corporation (acting through its New Zealand branch) Organising Participant ANZ Co-Manager Craigs Investment Partners Forsyth Barr Instrument NZD Medium Term Notes (“Notes”) issued pursuant to the A$15 billion Debt Issuance Programme and the NZ Investment Statement dated 2 June 2015. Status The principal amounts of, and interest on, the Notes will be direct, unsecured, unsubordinated obligations of the Issuer and rank equally with all other unsecured unsubordinated obligations of the Issuer, except indebtedness preferred by law. Agreement with Respect to the Exercise By its acquisition of the Notes, each holder of Notes will acknowledge, agree to be bound by, and of Dutch Bail-in Power consent to the exercise of, any Dutch Bail-in Power by the Resolution Authority, as described in more detail in Condition 13 of the terms and conditions in relation to the Programme. Purpose General corporate purposes Credit Ratings Issuer Rating Expected Issue Rating Standard & Poor’s A+ (negative) A+ Moody’s Aa2 (Stable) Aa2 Fitch AA- (negative) AA- A rating is not a recommendation by any rating organization to buy, sell or hold Notes. The above Issuer ratings are current as at the date of this Terms Sheet and may be subject to suspension, revision or withdrawal at any time by the assigning rating organization. Offer size NZ$400,000,000 Opening Date Tuesday 2 June 2015 Closing Date Wednesday 3 June 2015 Rate-Set Date Wednesday 3 June 2015 Issue Date Wednesday 10 June 2015 Maturity Date Wednesday 10 June 2020 Interest Rate 4.592 percent per annum The Swap Mid-Rate (expressed on a percentage yield basis) on the Rate Set Date for a period from the Issue Date to the Maturity Date plus the Margin.
    [Show full text]
  • Annual Financial Report 2001
    Annual Financial Report 2001 Form 20-F cross-reference index 2 Information on Westpac 4 Financial review 9 Key information 10 Operating and financial review and prospects 15 Overview of performance 15 Statement of financial performance review 17 Statement of financial position review 19 Business group results 20 Liquidity and capital resources 23 Risk management 24 Board of Directors 30 Corporate governance 32 Remuneration philosophy and practice 36 Ten year summary 39 Financial report 41 Shareholding information 129 Management 139 Additional information 141 In this report references to ‘Westpac’, ‘we’, ‘us’ and ‘our’ are to Westpac Banking Corporation. References to ‘Westpac’, ‘we’, ‘us’ and ‘our’ under the captions ‘Information on Westpac’, ‘Financial review’, ‘Corporate governance’, ‘Remuneration philosophy and practice’, ‘Shareholding information’, ‘Management’ and ‘Additional information’ include Westpac and its subsidiaries unless they clearly mean just Westpac Banking Corporation. 1 Form 20-F cross-reference index (for the purpose of filing with the United States Securities and Exchange Commission) Page Disclosure regarding forward-looking statements 3 Currency of presentation, exchange rates and certain definitions 3 20-F item number and caption Part I Item 1. Identity of directors, senior management and advisers Not Applicable Item 2. Offer statistics and expected timetable Not Applicable Item 3. Key information Selected financial data 3,10 Capitalisation and indebtedness Not Applicable Reasons for the offer and use of proceeds Not Applicable Risk factors 14 Item 4. Information on Westpac History and development of Westpac 4,6 Business overview 4-8 Organisational structure 4 Property, plant and equipment 6 Item 5. Operating and financial review and prospects Operating results 15-22,48,8,136 Liquidity and capital resources 23 Research and development, patents, licences etc.
    [Show full text]
  • An Examination of New Zealand Bank Efficiency
    Copyright is owned by the Author of the thesis. Permission is given for a copy to be downloaded by an individual for the purpose of research and private study only. The thesis may not be reproduced elsewhere without the permission of the Author. AN EXAMINATION OF NEW ZEALAND BANK EFFICIENCY A dissertation presented in partial fulfilment of the requirements for the Degree of Doctor of Philosophy m Banking Studies At Massey University Palmerston North New Zealand David William Lethbridge Tripe 2005 Abstract: This research explores the efficiency of the New Zealand banking system over the period 1996 to 2003 using Data Envelopment Analysis (DEA). DEA is used as a lack of data on prices and the relatively small cross-sections (because of the limited number of banks in the Tew Zealand market) pose difficultiesfo r the use of parametric methods. This is the first major research to make use of the data-set provided under the New Zealand banking disclosure regime, and the first major attempt at contrasting the relative efficiency of banks in Australia and New Zealand. The research discusses the problems of analysis of efficiency in small banking markets and proposes a solution through use of panel data. Analysis on this basis highlights problems that arise from changing enviromnental conditions (specifically from changes in the general level of interest rates), but also produces a reasonably consistent ranking of the efficiency of New Zealand banks. The research finds that equity IS an important input to the study of bank efficiency, and that it is a cause of diffe rences in relative efficiency between New Zealand and Australian banks.
    [Show full text]
  • Banking Crisis Resolution Policy - Different Country Experiences
    No. 10 | 2009 Staff Memo Banking crisis resolution policy - different country experiences David G. Mayes, University of Auckland Staff Memos present reports and documentation written by staff members and affiliates of Norges Bank, the central bank of Norway. Views and conclusions expressed in Staff Memos should not be taken to represent the views of Norges Bank. © 2009 Norges Bank The text may be quoted or referred to, provided that due acknowledgement is given to source. Staff Memo inneholder utredninger og dokumentasjon skrevet av Norges Banks ansatte og andre forfattere tilknyttet Norges Bank. Synspunkter og konklusjoner i arbeidene er ikke nødvendigvis representative for Norges Banks. © 2009 Norges Bank Det kan siteres fra eller henvises til dette arbeid, gitt at forfatter og Norges Bank oppgis som kilde. ISSN 1504-2596 (online only) ISBN 978-82-7553-522-9 (online only) Banking Crisis Resolution Policy ‐ different country experiences Which elements are needed for robust and efficient crisis resolution?∗ David G Mayes University of Auckland The current financial crisis has sparked an intense debate about how weak banks should be resolved. Despite international efforts to coordinate and converge on such policies, national policy advice and resolution practices differ. The resolution methods adopted in the Nordic banking crises in the 1990s are generally acknowledged to include important elements of “best practice”. But some of these lessons have proved hard to implement during the current crisis, and new policies have been developed as a response. The UK Special Resolution Regime has added important elements to the resolution “tool kit”. In the US, FDIC has used receivership powers to resolve several weak banks.
    [Show full text]