New Zealand banks well positioned to face new Covid shock, says RBNZ
Central bank carried out both solvency and liquidity stress tests in 2021 exercises
Banks in New Zealand are well enough capitalised to face a new Covid-19 crisis, showing the benefits of building up capital buffers, said the Reserve Bank of New Zealand on December 7.
The central bank carried out two separate exercises in 2021. One was a liquidity stress test, and the other was the regular solvency stress test, which tests banks’ capital resilience.
The solvency stress test included one scenario intended to assess the financial system’s resilience to a new global pandemic
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