Reserve Bank of New Zealand to release latest Basel III proposals
Reserve Bank of New Zealand deputy governor Grant Spencer said on May 9 that the central bank will soon be releasing modified standards relating to the Basel III capital proposals.
Speaking as the central bank launched its May 2011 Financial Stability Report, Spencer said the reserve bank was "continuing to strengthen regulation of the financial system, drawing on lessons from the financial crisis. We have recently reviewed submissions on our Basel III capital proposals and will shortly release modified standards for further industry review".
He added that the soundness of the New Zealand banking system continued to "improve" while demand for credit is weak.
Caution over the impact of global economic conditions and the potential impact on New Zealand's financial system was highlighted in the Financial Stability Report.
Alan Bollard, governor of the central bank, said: "Financial market sentiment has improved since the start of 2012, largely reflecting policy measures in Europe, which have helped to mitigate the effects of softening economic growth." However, he added that the situation remains "fragile".
Bollard said confidence in New Zealand was still weak, with households saving more and business investment stagnant.
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