New Zealand economy stable despite turmoil

New Zealand's financial system remains sound in spite of the recent global banking crisis, the Reserve Bank of New Zealand said on Wednesday.

Grant Spencer, the deputy governor responsible for financial stability, said the latest Financial Stability Report revealed banks' asset quality remains in good shape, and profits continue to increase in line with growth in bank lending.

"Despite the substantial impact of recent events on non-bank depositors, the failures are unlikely to have broader ne