In the journals

Oi, that's my horse
In this article, it is suggested that "the booming economy has been masking serious flaws of the Personal Property Securities Act 1999 which will become only too apparent if the economy slows and receiverships increase".

Basel II
The author discusses the driving forces behind the new Basel Accord, its inherent risks and benefits, and sets out the view that even smaller economies (such as New Zealand) need to take note of the underlying developments.

Understanding bank risk in New Zealand
In this article, the consequences of a bank failure in New Zealand, the issue of depositor protection, and the key findings of a risk awareness survey are discussed.

Australasia tackles banking integration
This article looks at the challenges to the increased harmonisation of banking regulation across Australia and New Zealand, such as the new policies of the Reserve Bank of New Zealand on local incorporation requirements and outsourcing restrictions.

Can mutual set-off arrangements be set aside in liquidation despite mandatory statutory provisions?
Two articles point to statements made recently by the Court of Appeal that appear to run contrary to well-established insolvency law principles.

Subordinate security potentially ineffective following sale by receiver
Two articles examine the High Court's recent decision that, where a receiver sells personal property of a borrower, the sale automatically releases any security interest in those assets held by subordinate security holders.

Unconscionable demands under letters of credit, performance bonds and bank guarantees
This article discusses exceptions to the autonomy principle under which payment instruments operate independently of any dispute relating to the underlying contract. In particular, the authors consider the development in Australia of an exception based on unconscionable conduct under the Trade Practices Act 1974 (Cth).

Enquiries and information

For more information on any of the cases, articles and features in Financial Services Quarterly, please email Rachel Gowing or call on 64 9 916 8825.