Reserve Bank warns of higher defaults on agricultural loans

(Image: Getty)

Thu, 26 Oct 2023

The country’s central bank is warning of “materially higher default rates” on agricultural loans if the current downturn in the primary sector is prolonged.That’s according to an extract from the Reserve Bank of New Zealand’s (RBNZ) upcoming financial stability report (FSR).Every six months the central bank publishes the report looking at the efficiency of the country’s financial system.The primary sector made up 11% of all bank lending at a total of $62.3 billion in August. Within that, 60% is dairy –...

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