economy investor guide, 2017. the maori economy – new zealand foreign affairs & trade ref # 8528795 zealand economy and leading in some areas such as brand development. the maori economic asset base now adds - up to multi - billions of dollars, representing an important part of the putea of aotearoa. however, measuring the contribution of maori to the economic wellbeing of aoteroa by asset size alone is a dis - service. maori culture, and the challenges maori and pakeha have faced together since the 1800s, continue to mold how we do business in new zealand, and how we are viewed by the rest of the world. 3 in 2018, the new zealand ministry of foreign affairs and trade recognised maori as being key to international trade. 4 we also champion the past and ongoing maori economic contribution in our story the journey of te putea matua5, starting with the arrival of your tipuna in the 1400s, or thereabouts. the economic practices of your tipuna are well known to have been, and continue to be, long - term and inter - generational. your investments aim to be values - based in the interests of your mokopuna and their mokopuna. you strive to show more new zealanders how manaakitanga and kaitiakitanga are integral to running a business. it ’ s important to not only recognise the value maori business brings to aotearoa but to also encourage and protect that contribution. it is a vital resource that should not be overused. this is similar to a desirable ‘ virtuous circle ’ of business activity, one that self - supports economic profit, environmental sustainability, social inclusion, and cultural diversity. 6 the alternative is the ‘ vicious circle ’ that sees any one of these outcomes only being achieved at the cost of another. often the difference between the vicious and virtuous circle is simply the time horizon over which people are incentivised to operate. te putea matua has a lot to learn from you, as do business owners globally. a real - life example of business based on long - term values. this is, in part, why we have introduced a te ao maori strategy7 at te putea matua. our role is to think and operate for the long - term, and to be successful we need to be relevant and draw on the broadest insights. it is also in part to support and guide our climate change strategy8

sized dairy downturn, but many indebted farms might not. what are we doing, as te putea matua, about the challenge of competing horizons and purposes when it comes to ensuring financial stability? on top of keeping inflation low and stable so businesses can focus on the long - term, we also look at other ways to maintain a healthy financial system. it is known that banks will be better incentivised to think about the long - term performance of the businesses they lend to, if they have more of their own equity at stake ( i. e. more of their own skin in the game ). this is why we are proposing to significantly increase the minimum capital requirements for banks operating in new zealand28. an increase in bank capital benefits all new zealanders by creating a safer banking system and longer - term lending consideration. this topic should be of special interest to some of you who are managing collectively owned assets. since it is difficult for a bank to foreclose on a collectively owned asset, lending to such organisations is considered unsecured, and therefore more expensive. this makes it more difficult for you to get access to bank lending. in the short - term, less access to credit puts businesses with collectively owned assets at a competitive disadvantage to their industry counterparts. they have less funding optionality. these businesses also remain exposed to economic downturns which can be exacerbated by excessive lending to other competitors in the same industry. 27 based on credit conditions survey and financial system analysis review of the capital adequacy framework for registered banks : how much capital is enough? ref # 8528795 in the longer - term, businesses operating with collectively owned assets have lower leverage ratios than their industry counterparts as a result. lower leverage brings greater resilience to economic shocks and longer - term sustainability. this means, in the longer - term, maori businesses with collectively owned assets can have a stabilising effect on the economy as a whole. i know for some of you, any progress to change this situation is too slow. in the meantime, i would encourage you to take advantage of the opportunities that come with greater resilience, and look for partnerships that value long - term outcomes. in summary, the challenges ahead will still test your skills and adaptability : the global economic environment is volatile as trade tensions persists ; commodity price swings will continue to test resilience ; evolving consumer tastes and preferences are fast - moving and we need to move