New Zealand banks can withstand geopolitical shocks, says RBNZ
Latest stress test monitors impact of recession and liquidity crisis triggered by potential global events
New Zealand’s biggest lenders are well placed to withstand the solvency and liquidity impacts of geopolitical shocks, the central bank’s latest stress test has concluded.
The test, the results of which were published today (November 3), examined two scenarios aimed at assessing large banks’ ability to withstand the effects of a global downturn triggered by developments in geopolitics.
Under the first scenario, New Zealand underwent a recession and faced disruption to trade, heightened unemployment
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: subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com test test test
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com test test test
More on Financial Stability
Ex-governor says Fed should use Treasury derivatives in crisis
Doing so could split response from monetary policy and hedge interest rate risks, argues Jeremy Stein
Carney to direct BoC to administer open banking and stablecoins
PM’s first budget plan includes funding allocation for central bank to administer relevant legislation
Posen predicts Supreme Court will side with Cook
However, PIIE president tells panel that justices are still likely to undermine Fed independence
FATF delisting of African nations a transactional move, says analyst
Organisation rejects suggestion that political factors were behind countries being taken off ‘grey list’
Stress-test transparency: how much is too much?
The transparency drive to disclose bank stress-test results comes with costs
AWS outage barely affected Europe’s central banks
Monetary authorities say robust risk mitigation frameworks helped them to largely avoid fallout
Asia-Pacific central banks list geopolitics, AI among key challenges
EMEAP, representing monetary authorities from across region, commits to strengthening co-operation
Former Kansas City Fed chief sounds alarm over banks’ leverage
Hoenig says largest lenders are not adequately capitalised for their risks