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  3. The FMA’s role in the 2016 New Zealand FSAP

The FMA’s role in the 2016 New Zealand FSAP

The benefits of an FSAP include:

  • early identification of financial system risks and vulnerabilities and/or gaps in the regulatory framework
  • a ‘positive’ FSAP can support the financial system as a whole, improve the perception that the country has a well-regulated financial sector, facilitate market development, and underpin investor confidence
  • participation in the assessment process provides a sense of international citizenship and a mechanism for comparison with countries with similar financial systems
  • where there are gaps in international standards that reflect the specific financial structure of a given jurisdiction, an FSAP provides an opportunity for the local authority to clearly articulate why they have chosen to depart from international norms
  • international lenders and investors may take the results of FSAP assessments into account when considering the risks and benefits of investing in a jurisdiction, and the level of return that they will expect.