- Analytics
- News and Tools
- Market News
- RBNZ: New Zealand banks at little risk from interest rate rises
RBNZ: New Zealand banks at little risk from interest rate rises
“Banks in the country have relatively little risk from surging interest rates as they are required to hold sufficient capital to cover potential losses,” said Reserve Bank of New Zealand (RBNZ) early Monday per Reuters.
The RBNZ released excerpt of its May 2023 Financial Stability Report amid the ongoing banking fears due to the First Republic bank’s latest fallout.
Also read: Sources: PNC, JPM putting in final bids for First Republic in FDIC auction
Additional statements
Banks in New Zealand ‘manage this risk by matching the repricing profile of their assets and liabilities, and by using financial products to hedge any differences.’
They are also required to hold sufficient capital to cover potential losses arising from any remaining interest rate risk, which incentivises banks to carefully manage the risk.
NZD/USD grinds
With the RBNZ’s assurance, the NZD/USD battles with the market’s risk-off mood, as well as downbeat China data, while making rounds to 0.6170-80 and prints mild gains by the pres time.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
