RBNZ plucks bank capital numbers out of the air: Reddell

Tue, 22 Jan 2019

By Jenny Ruth Jan. 22 (BusinessDesk) - The Reserve Bank is discrediting its own evidence and plucking numbers out of the air in justifying its proposed bank capital requirements, former Reserve Bank official Michael Reddell says. The central bank’s stress tests of the major banks published in late 2014 “were very stringent, using an increase in the unemployment rate larger than any seen in any floating exchange rate country in at least 30 years,” Reddell says in his Croaking Cassandra blog. For that scenario, the Reserve Bank assumed a...

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