IMF urges better bank monitoring in NZ

The Reserve Bank of New Zealand's monitoring of banks may not give enough information "at the onset of a sudden crisis", according to the International Monetary Fund.

The central bank needs to sharpen its checks on "potential stress" in the banking system, it says.

It also points out that the Reserve Bank would face "unique challenges" in any financial crisis, because bank deposits are not government guaranteed, and most banks are Australian-owned.

The IMF issued a detailed report yesterday on