Banking system fundamentally sound: RBNZ

The Reserve Bank of New Zealand on Thursday moved to assuage fears that the country's financial system is unstable.

Toby Fiennes, the head of prudential supervision at the Reserve Bank, said that the banking system was continuing to function well despite the recent failures of local financial firms, frozen mortgage trust funds and potential bad-debt provisions by international banks.

"The majority of institutions, accounting for more than 90% of household financial assets, are not directly af