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."


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Some Of The Moral Objections Being Levelled At Covid Vaccines

Quite the switch. Barely three months ago, the government was priding itself on cannily spreading its vaccine bets between Pfizer, AstraZeneca, Novovaxx and the Johnson and Johnson vaccine being produced by its subsidiary, Janssen. It had seemed like a good idea to have supply contracts in place with almost the entire field given the uncertainties... More>>


Earthquakes: Tsunami Activity – Cancelled

The National Advisory issued at 2:48pm following this morning's earthquakes near the KERMADEC ISLANDS REGION is cancelled.
The advice from GNS Science, based on ocean observations, is that the Beach and Marine threat has now passed for all areas... More>>

Joint Press Release: Dirty PR Exposed In Whale Oil Defamation Trial

Three public health advocates are relieved that their long-standing Whale Oil defamation trial against Cameron Slater, Carrick Graham, Katherine Rich and the Food and Grocery Council has finally concluded and they are pleased that the truth has come out... More>>


Government: Next Stage Of COVID-19 Support For Business And Workers

The Government has confirmed details of COVID-19 support for business and workers following the increased alert levels due to a resurgence of the virus over the weekend... More>>


Maori Party: New National Executive

This morning the Māori Party confirmed their new National Executive including Che Wilson, Fallyn Flavell, John Tamihere and Kaiarahi Takirua: Rawiri Waititi and Debbie Ngarewa-Packer... More>>

Government: Balanced Economic Approach Reflected In Crown Accounts

New Zealand’s economic recovery has again been reflected in the Government’s books, which are in better shape than expected.
The Crown accounts for the seven months to the end of January 2021 were better than forecast in the Half Year Economic and Fiscal Update (HYEFU)... More>>

Covid-19: Auckland Back To Alert Level Three After One New Community Case Revealed

Auckland will move to alert level three for a week at 6am tomorrow morning after two new Covid-19 community cases announced this evening could not be directly linked to earlier cases, the Prime Minister has confirmed.
The rest of the country will move to level two.... More>>

NZ Initiative: New Report Highlights How Our Housing Crisis Could Worsen If We Don’t Act Now

If New Zealand politicians thought the housing crisis in 2020 was bad, the worst is yet to come, warns a new report by The New Zealand Initiative. In The Need to Build: The demographic drivers of housing demand , Research Assistant Leonard Hong ... More>>




InfoPages News Channels