Reserve Bank stress test shows more bank capital is unneccesary

Reserve Bank stress test shows more bank capital is unneccesary
Governor Adrian Orr may have predetermined the bank capital review's outcome. (Photo: NZME)
Jenny Ruth
Every year these days, the Reserve Bank of New Zealand asks the banks to test some grim economic scenario and each year the banks show they can manage through the various economic hellscapes without even having to eat into their capital.And the point about banks’ capital is that it’s supposed to be a buffer protecting their customers should quite catastrophic scenarios unfold.NZ’s big four banks have long held more capital than their Australian parents. The Australian Prudential Regulation Authority regards banks with at...

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