Promoted To Levels Beyond One's Competence
Columnist Kate MacNamara has written a piece severely criticising the present Governor of the Reserve Bank, Adrian Orr. He has, apparently, been acting like a loose cannon which is exhibiting the same kind of self-regard more usually on display by pompous politicians rather than prudent, wise central bank governors.
Governor Orr is running a campaign to ensure that big Australian banks commit more prudential capital to their businesses in New Zealand. In other words, Orr wants to see more reserves in the tank, should there be a crisis in the banking sector in New Zealand. Now this is not an unworthy or inappropriate issue. It is very definitely a legitimate and appropriate concern for the Reserve Bank of New Zealand, and its governor, Adrian Orr.
What is not legitimate nor appropriate is Orr's behaviour or the reported nasty manner in which he has been conducting business. MacNamara writes:
In December, the Reserve Bank released its boosted capital reserves proposal and asked all interested parties to make submissions. It would be an open process, the bank said, welcoming all views.When people behave like that it displays either arrogance, or insecurity, or--in the worst of all possible worlds--an insecurity so deep that it can only be covered it over with arrogant, personal attacks. The ordinary term for such behaviour is bullying. Our old mother used to say, "Scratch the bully and underneath you will find a quivering coward."
But that characterisation was soon at odds with the governor's behaviour. Numerous parties involved in the submission process described a pattern of behaviour by Orr of belittling and berating those who disagreed with him. Orr has penned his critics letters and threatened to broadcast them. He has confronted submitters on the sidelines of industry conferences. Sometimes he called them up at odd hours to tear a strip off them for their views.
Governor Orr is showing signs of being well out of his depth.
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