Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Reserve Bank issues Financial Stability Report

Reserve Bank of New Zealand

News Release

18 November 2005

Reserve Bank issues Financial Stability Report

The Reserve Bank today released its Financial Stability Report (http://www.rbnz.govt.nz/finstab/fsreport/index.html), a twice-yearly report that assesses the robustness of the New Zealand financial system.


Reserve Bank Governor Alan Bollard commented: "The New Zealand financial system, overall, is well placed to weather a possible slowdown in the economy. The economic expansion of recent years has been reflected in strong financial sector balance sheets, and levels of trading in financial markets that have given them depth and liquidity.

"However, these same developments have also sown the seeds for a more testing time ahead. Household indebtedness has continued to climb, relative to household incomes, and house prices have become more inflated. Farm debt and farm land prices also appear stretched.

"A counterpart to these developments has been a further widening of the balance of payments current account deficit, to 8 per cent of GDP. This deficit is very large by OECD standards and is not sustainable over the medium term.

"Adjustment to these imbalances, if abrupt, could test the resilience of the financial system.

"In financial markets, large imbalances invariably trigger changed risk assessments at some point. These can be abrupt and can result in financial market volatility.

"There are also implications for borrowers, and for the lending institutions. Adjustment to imbalances will mean changes in the circumstances facing many households and firms, and possible strains on the abilities of some to service debt.

"We do not see those strains as spilling over to the financial system on a scale that would undermine its overall stability - though specific stresses cannot be ruled out.

"All in all, the risk conditions facing the financial system over the next six months could be more testing than during the past six months. Maintenance of ongoing financial stability will require prudent management and pricing of risk by all participants - by those who borrow, by the institutions that lend, and by those who invest in the financial markets."

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Reaction

Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced

 

Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>

ALSO:


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>

ALSO:

Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>

ALSO:

Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>

ALSO:

Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>

ALSO:

Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>

ALSO:

Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election