This paper explores the
statistical similarities and differences in the banking systems of Australia
and New Zealand between 2005 and 2016. It uses factorial analysis, from which
the six factors are obtained, synthesizing the economic and financial measures
that are used in both countries. We examine how the factors obtained behave
over time and consider the implications for separate and joint prudential
banking policy in the two countries.
JEL classification numbers: G21, M41
Keywords: Banking system in Australia and New Zealand, Factor analysis,
prudential banking policy, financial stability.