Reserve Bank of New Zealand interrupting the US political news!
- Stress test shows nz banking system can withstand severe dairy downturn
- NZ agricultural sector highly leveraged, poses structural risk
- Stress test shows losses of between 3 to 8 percent of total dairy lending if payout remains low
- Banks could write off between 12 to 25 percent of initial dairy lending if payout remains low
- Bank losses likely absorbed through lower earnings than erosion of capital
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RBNZ sounding like they are trying to polish up bad news with this low
NZD dipping on these headlines
