New Zealand Bank Vulnerabilities in International Perspective

WPIEA2009224 Image
Price:  $18.00

Author/Editor: Ray Brooks, Rodrigo Cubero
Release Date: © October, 2009
ISBN : 978-1-45187-371-9
Stock #: WPIEA2009224
English
Stock Status: Available

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Description

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.

Taxonomy

Economic sectors , Financial crisis , International financial system , Private sector




More publications in this series: Working Papers


More publications by: Ray Brooks ; Rodrigo Cubero