In a turbulent world, New Zealand stands out as a reassuringly sturdy beacon of economic, political and social stability. New Zealand was ranked the world's third most stable country in the Fund for Peace 2016 Fragile States Index. New Zealand ranks comfortably among the world’s top 10 countries for adherence to the rule of law according to the World Justice Project (WJP) 2017 Rule of Law Index. Political stability and effective governance has translated into the economic sphere. New Zealand has long enjoyed stable economic conditions. It has a 1 place among 190 countries in Easy of Doing Business ranking. The New Zealand financial system is dominated by the banking sector, with banking assets accounting for a very large share of overall financial system assets. New Zealand banking sector is treated as one of the most safeties in the world.
New Zealand is currently the only OECD country without any sort of deposit insurance scheme. The main argument against deposit insurance is that it may weaken market disciplines. In New Zealand, the Government and the Reserve Bank have established the Open Bank Resolution (OBR) tool to try to buttress the “no bailouts” message. The OBR is designed to ensure that a bank can be reopened immediately after it fails (thus keeping basic payments services going).