RBNZ: FSR expected to show good health of the banking sector - TDS

Analysts at TD Securities suggest that the semi-annual RBNZ Financial Stability Report is expected to repeat that the banks are in good shape but remain exposed to highly indebted households and dairy farms, and remain dependent on offshore funding.

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“Bank culture is also under the spotlight after some salacious revelations in the Australian Royal Commission into Banking and Finance. However, all markets will care about is to what extent will LVR restrictions be loosened, despite the recent recovery in house prices.”