New Zealand Bank Vulnerabilities in International Perspective

 
Author/Editor: Brooks, Ray ; Cubero, Rodrigo
 
Publication Date: October 01, 2009
 
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: The global financial crisis is creating stress on banking systems across the world through funding and asset quality shocks. This paper combines different stress scenarios, as well as cross-country analysis, to assess New Zealand bank vulnerabilities to the global crisis and the domestic recession. It finds that a sharp worsening of asset quality would be required to reduce bank capital below the regulatory minimum. On the funding side, a disruption to banks' offshore funding may put pressure on the exchange rate, but would not trigger a systemic liquidity problem.
 
Series: Working Paper No. 09/224
Subject(s): Banking sector | Banks | Corporate sector | Credit risk | Cross country analysis | Financial assets | Financial crisis | Financial soundness indicators | Household credit | Housing prices | New Zealand | Private sector | Risk management

Author's Keyword(s): New Zealand | bank funding | bank asset quality | stress tests
 
English
Publication Date: October 01, 2009
Format: Paper
Stock No: WPIEA2009224 Pages: 26
Price:
US$18.00 (Academic Rate:
US$18.00 )
 
 
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