Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Reserve Bank confident in NZ financial system


Reserve Bank confident in NZ financial system

The Reserve Bank today reiterated its previous comments that the New Zealand banking system remains sound. Its comments follow financial market turbulence following the failure of the US Troubled Assets Relief Program to pass through Congress.

Reserve Bank Governor Alan Bollard said the liquidity measures taken to date by the Bank are handling the pressures from global markets.

"We are monitoring current events in the financial markets very closely," Dr Bollard said. "The failure of the US Congress to agree the bail-out package was a disappointment, and it leaves parts of the financial markets in limbo until the matter is resolved.

"In the meantime, the very short-term effects on the New Zealand market are not major. However, there could well be medium-term effects on the economy - but we will continue to deal with them through our normal monetary policy process. The next OCR decision is due on October 23. "The banking system is sound in New Zealand, and we do not expect this to alter. Over the past year, we have announced a number of measures that will make it easier for financial market participants to maintain liquidity during a period of financial market disruption. While we believe these are sufficient, we are keeping liquidity support arrangements under review and will respond as appropriate.

"In the meantime we are staying in close touch with the banks, and also with the Government."

end

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>

ALSO:

Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>

ALSO:

Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>

ALSO:

Divesting: NZ Super Fund Shifts Passive Equities To Low-Carbon

The NZ$35 billion NZ Super Fund’s NZ$14 billion global passive equity portfolio, 40% of the overall Fund, is now low-carbon, the Guardians of New Zealand Superannuation announced today. More>>

ALSO:

Split Decision - Appeal Planned: EPA Allows Taranaki Bight Seabed Mine

The Decision-making Committee, appointed by the Board of the Environmental Protection Authority to decide a marine consent application by Trans-Tasman Resources Ltd, has granted consent, subject to conditions, for the company to mine iron sands off the South Taranaki Bight. More>>

ALSO: