RBNZ lowers banks’ core funding ratios
Central bank reduces ratio to 50% to support government’s crisis lending scheme
The Reserve Bank of New Zealand has reduced banks’ core funding ratios from 75% to 50% today (March 24).
The action aims to support government initiatives focused on supporting banks’ lending to businesses.
Governor Adrian Orr said it was “critical” that banks have the ability to extend credit to businesses to “bridge the difficult times” created by the coronavirus.
“We will monitor banks’ behaviour over coming months to assess the effectiveness of the risk-sharing scheme,” he said in a
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