Reserve Bank of New Zealand governor Graeme Wheeler has told a conference of banking regulators from the Asia Pacific that larger countries should support regulators in smaller countries wanting to customise global rules for local conditions.Speaking to the 10th Asia Pacific High Level Meeting on Banking Supervision in Auckland this week, Wheeler cited examples of where the New Zealand central bank, which is also the regulator for New Zealand's banks, had adapted global standards into local regulations.He said the Reserve Bank had adapted the Basel capital frameworks to account for the larger risks from dairy farm lending in New Zealand and its vulnerability to swings in commodity prices.New Zealand had also created its own liquidity requirements for short-term foreign funding ahead of the Basel III requirements because of the reliance of New Zealand banks on such funding.  Wheeler said New Zealand had also decided not to use the leverage ratio proposed under global standards. "Our banking system is relatively vanilla and we closely monitor risk weights on key assets," he said, adding that New Zealand's leverage was better than the global standards anyway.He said smaller countries such as New Zealand followed the debates around banking standards for the bigger countries carefully and had relationships with the bigger countries as home supervisors, regulators of international infrastructures, and participants in peer reviews."In these roles, it's helpful if larger countries recognise small country differences, as well as the mandate of small country regulators to protect their national interests," Wheeler said."Large countries should support the approaches taken by smaller countries to implement reforms - when they support the intended outcomes of global standards, but in ways that may deviate from large country norms in order to meet local country conditions."