Reserve Bank says more pain to come, but banking system resilient

Increased financial stress is on the horizon but the Reserve Bank of New Zealand remains confident the banking system is resilient to a range of downturn scenarios. "While we are not currently seeing widespread financial distress amongst households or businesses, in part this reflects the fact that the repricing of the stock of mortgage lending will take some time," it said in a pre-released excerpt from Wednesday’s Financial Stability Report. “However, we expect more borrowers to fall behind on their payments th...