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