RBNZ asks banks to stress test dairy loans, confident they can weather downturn

Tue, 10 Nov 2015

By Paul McBeth Nov. 11 (BusinessDesk) - New Zealand's major lenders are able to cope with a protracted downturn in the dairy sector, which the Reserve Bank estimates could cause credit losses of as much as 18 percent over a four-year period. The central bank has requested the five biggest lenders to the dairy sector - ASB Bank, ANZ Bank New Zealand, Bank of New Zealand, Westpac New Zealand and Rabobank New Zealand - to stress test their portfolios, which the Reserve Bank sees as a growing risk to the health of the nation's financial stabi...

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