Reserve Bank: Cautious lending keeps lid on default rates

Reserve Bank deputy governor Christian Hawkesby is encouraged that the increase in borrower stress isn't accelerating. (Image: RBNZ)

Jem Traylen

Wed, 01 May 2024

The impacts of higher interest rates are less severe than expected but risks to the global financial system remain, our central bank says.In its Financial Stability Report released on Wednesday, the Reserve Bank of New Zealand (RBNZ) said cautious lending standards over recent years were helping to contain the increase in default rates in agricultural and business lending.Deputy governor Christian Hawkesby said the NZ banking system remained well-placed to handle a range of severe scenarios.He said banks’ capital positions remained strong...

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