Would RBNZ’s bank resolution work? No, say the experts

Former Reserve Bank official Geof Mortlock doesn't think bank resolution would work. (Image: ICNZ)

Tue, 11 Apr 2023

New Zealand’s banks don’t appear at all vulnerable to the vicissitudes afflicting regional US banks and which brought down Switzerland’s second-largest bank, Credit Suisse.All are very well capitalised and are becoming even better capitalised, thanks to the Reserve Bank of NZ’s (RBNZ) new rules which phase in over seven years from July 1 last year.The big four NZ banks are each owned by Australia’s big four banks and have long been better capitalised than their parents.And that’s just on a superficial level,...

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