Academic journal article The Reserve Bank of New Zealand Bulletin

Financial Resilience Strengthened: 24 September 2012

Academic journal article The Reserve Bank of New Zealand Bulletin

Financial Resilience Strengthened: 24 September 2012

Article excerpt

The Reserve Bank's latest Annual Report demonstrates progress on several fronts to enhance New Zealand's resilience against global financial and economic uncertainty.

"With the aftershocks of international and domestic crises persisting longer than expected, it is important that New Zealand's ability to withstand shocks continues to be strengthened," departing Reserve Bank Governor Alan Bollard said today, when releasing the Bank's 2011-2012 Annual Report.

Dr Bollard said the Bank had initiated in the last year several business priorities to promote resilience for the economy, the financial system, and the Bank.

The Bank has developed regular monitoring and measurement of financial imbalances in the economy. Four macro-prudential tools have been identified that the

Bank could consider using if future credit conditions were to warrant it, though with current subdued credit growth there is no need to deploy such tools at present.

The Bank intends to finalise the Basel III prudential capital requirements for banks in 2012, and banks will have to comply with the core capital requirements from the beginning of 2013. …

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