NZ banks strong enough to withstand prolonged weakness in dairy prices: RBNZ

Wed, 16 Mar 2016

By Paul McBeth March 16 (BusinessDesk) - ASB Bank, ANZ Bank New Zealand, Bank of New Zealand, Westpac New Zealand and Rabobank New Zealand - which account for about 98 percent of lending to dairy farmers - are strong enough to withstand a protracted period of low dairy prices, according to Reserve Bank stress testing. The five lenders are expected to face losses over a longer time frame if dairy prices stay below the average breakeven price for as long as five years, the central bank said in a report today. The lenders stress tested thei...

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