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The Reserve Bank of NZ is  acting to bolster financial system resilience – Reuters News

Full report

Key notes

  • Decided to leave the LVR  restrictions at current levels at this point in time.
  • Strong bank capital buffers are key to enabling banks to absorb losses.
  • Recent reviews of banks and life insurers, number of breaches reinforces need for institutions to improve behaviour.
  • Will be taking a more intensive approach, which will involve greater scrutiny of institutions’ compliance.
  • Some life insurers have low solvency buffers over minimum requirements.
  • Need for insurers to maintain strong buffers, and insurer solvency requirements will be reviewed.

More to come