RBNZ bank capital proposals will drive up rates, reduce credit

Wed, 30 Jan 2019

By Jenny Ruth Jan. 31 (BusinessDesk) - The Reserve Bank’s proposed doubling of required bank capital will drive up interest rates and reduce available credit and slow economic growth, says Milford Asset Management analyst Ian Robertson. The Reserve Bank has “rattled the cage” and he is surprised at the scale of the proposed increase, Robertson says. He’s the latest analyst to weigh in the central bank’s unexpected proposal to raise the minimum level of tier 1 capital from the current 6 percent to 16 percent for the four major banks and...

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