The Reserve Bank of New Zealand is monitoring the situation closely, and is in regular contact with other regional regulators and regulated entities.
We are confident that the banks we are responsible for supervising have sound liquidity and funding positions. These issues also reinforce the importance to financial stability of sound financial risk management by banks, particularly in an environment with large changes in interest rates.
In New Zealand all registered banks are required to have systems in place to monitor and control their material risks, and this includes interest rate risks. Our banks also operate different business models that mean that they are not as exposed to the risks that have led to recent events. Our rigorous stress testing has shown that they are well-placed to deal with far more adverse situations than what we are currently experiencing.
