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RBNZ: Financial Stability Report May 2025
Financial stability risks have increased over the past six months on the back of global economic uncertainty. The financial system is well placed to support households and businesses. While lower interest rates are reducing debt-servicing costs and easing financial stress for borrowers domestically, risks to global economic growth have increased sharply. The banking sector has significant buffers to continue to provide credit to the economy even if conditions worsen further. The US imposed sweeping tariffs on goods imports from New Zealand and our major trading partners. Trade tensions between the US and other ... (full story)
Added at 4:05pm
- RESERVE BANK OF NZ FSR:
RISKS TO THE FINANCIAL SYSTEM HAVE INCREASED OVER THE PAST SIX MONTHS
WHILE GLOBAL ECONOMIC ENVIRONMENT HAS BECOME MORE VOLATILE, OUR FINANCIAL INSTITUTIONS ARE IN A STRONG POSITION TO SUPPORT THE ECONOMY
BANKS HAVE STRONG CAPITAL AND LIQUIDITY BUFFERS IN PLACE TO MAINTAIN CREDIT FLOWS EVEN IF CONDITIONS DETERIORATE FURTHER
BANKS ALSO REMAIN PROFITABLE, WITH NON-PERFORMING LOANS EXPECTED TO DECLINE AS MORTGAGE RATES REPRICE LOWER
GENERAL INSURERS ARE EXPERIENCING MORE STABLE CONDITIONS
RECENT INSURANCE STRESS TEST HIGHLIGHTED IMPROVED RESILIENCE IN THE SECTOR
GEOPOLITICAL RISKS HAVE HEIGHTENED FINANCIAL MARKET VOLATILITY AND POSE A MATERIAL RISK TO GLOBAL ECONOMIC ACTIVITY
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