ASB says RBNZ estimates of bank capital impact are too low

Tue, 16 Apr 2019

By Jenny Ruth April 16 (BusinessDesk) - ASB Bank says the likely impact of the Reserve Bank’s proposals to near double the minimum amount of capital banks must hold will be considerably higher than the central bank’s estimates. However, ASB’s calculations of the likely impact on the cost of borrowing are lower than those of broking firm UBS. While the Reserve Bank has estimated a 20-40 basis point increase in borrowing costs, ASB thinks the impact will be more like 50 points, although the risk is a higher impact and the effect may be u...

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