Hon Sir Roger Douglas: What policy actions does the Minister intend to take to ensure that foreign bank lenders are more likely to roll over debt owed to them by New Zealand companies when it falls due for repayment?
Hon BILL ENGLISH: This issue will be less of a challenge in New Zealand than, perhaps, in other countries, but there is no doubt that global banks are de-globalising. Where Governments increasingly own them, they are putting pressure on those banks to lend in their home markets rather than here. The most important thing we can do is to continue to underpin the stability of financial markets and the relatively favourable credit conditions that are enjoyed in the New Zealand banking system. But this issue is one of any number of risks to the availability of credit in New Zealand, as it is in other countries.
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