RBNZ examines financial system
- Financial system is sound but continues to face risks
- Banking system has strong capital and funding buffers, profits remain high
- Banking system's reliance on offshore wholesale funding is beginning to increase
- Financial markets have remained volatile due to political uncertainty
- Banks could become susceptible to higher wholesale funding costs due to a rise in financial market volatility
- Share of bank lending to customers with high debt-to-income ratios is rising
- Debt-to-income restrictions could be warranted if housing imbalances were to deteriorate further
- Indebtedness in the dairy sector has increase, leaving it vulnerable to shocks
- House price inflation in Auckland has softened but it is uncertain if it will be sustained
- There is a significant risk of further upward pressure on housing
- Undertaking current review of bank capital requirements
I don't see any tradable headline here.
In any case, history has shown that central banks always miss the risks and potential problems until it's too late.
