New Zealand paper finds costs and benefits of stable funding requirement

reserve-bank-of-new-zealand

A discussion paper published by the Reserve Bank of New Zealand on August 9 studies the effects of a stable funding requirement imposed on banks by Basel III, finding that this creates both costs and benefits.

Authors Chris Bloor, Rebecca Craigie and Anella Munro use an open-economy general equilibrium model to assess the impact of introducing a stable funding ratio. The paper finds the requirement increases a bank's reliance on long-term wholesale funding, raising the cost of credit and

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.