New Zealand banks operating above minimum regulatory requirements: central bank

NEW Zealand’s central bank said on Friday all banks in the country were currently operating above its minimum regulatory requirements and that it was closely monitoring the turmoil in global financial markets.

“Our banks operate different business models that mean that they are not as exposed to the risks that have led to recent events,” the Reserve Bank of New Zealand (RBNZ) said in a tweet.

“Our rigorous stress testing has shown that they are well-placed to deal with far more adverse situations than what we are currently experiencing.”

RBNZ said it was aware of the current financial stability issues “with a small number of banks internationally”, adding it was in regular contact with other regional regulators and regulated entities.

Banking stocks globally have been battered since the collapse of Silicon Valley Bank. On Thursday, Credit Suisse said it will borrow up to US$54 billion from Switzerland’s central bank to shore up liquidity.

Large US banks injected US$30 billion into First Republic Bank on Thursday, swooping in to rescue the lender caught up in a widening crisis triggered by the collapse of two other mid-size US lenders over the past week. REUTERS