New Zealand bank vulnerabilities in international perspective [[electronic resource] /] / Ray Brooks and Rodrigo Cubero

• Record Nr.: UNINA9910464854403321
• Autore: Brooks R (Raymond), <1958->
• Pubbl/distr/stampa: [Washington, D.C.], : International Monetary Fund, 2009
• ISBN: 1-4623-6787-9; 1-4527-4501-3; 1-282-84427-X; 9786612844270; 1-4518-7371-9
• Descrizione fisica: 1 online resource (54 p.)
• Collana: IMF working paper ; ; WP/09/224
• Altri autori (Persone): CuberoRodrigo
• Disciplina: 332.1
• Soggetti: Banks and banking - New Zealand; Financial crises; Electronic books.
• Lingua di pubblicazione: Inglese
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Note generali: Description based upon print version of record.
• Nota di bibliografia: Includes bibliographical references.
• Nota di contenuto: Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. The Global Turmoil: How Has it Affected New Zealand Banks?; 1. New Zealand's Four Large Banks: Selected Financial Soundness Indicators; 2. Financial Soundness Indicators of the Banking Sector; 1. Bank Asset Quality; 2. Mortgage Interest Rates; 3. Overall Credit Growth; III. Can Banks Handle an Increase in Mortgage Defaults?; 4. Bank Asset by Type; 5. Household Debt; 3. Housing Market Risk: Stress Tests Results, December 2008; 4. Owner-Occupied Mortgages by Risk Bucket; 5. Numerical Example of Mortgage Default Probabilities; IV. How Vulnerable are Banks to Higher Defaults on Corporate Lending?6a. Business and Agriculture Credit Growth; 6b. Credit to GDP Ratio; 7. Overdue Debts and Liquidations; 6. Corporate Sector Indicators; 7. New Zealand's Credit Risk Exposure by Asset Class, December 2008; V. What are the Risks Related to Banks' Wholesale Funding?; 8a. Net Capital Inflows; 8b. Net Foreign Liabilities; 8c. Bank Borrowing Offshore; 8d. Bank's Share of Funding from Nonresidents; 9a. Debt by Residual Maturity; 9b. Local Currency External Debt as Share of Total External ; Debt; 10. Average 5-Year CDS Spread on Four Major Australasian Banks11. Funding Costs for Banks and New Mortgage Rates; 12. Loan-to-Deposit Ratio for the Banking System; 8. Balance of Payments Financing; 9. Funding Structure; Appendix; References; Footnotes
• Sommario/riassunto: The global financial crisis is creating stress on banking systems across the world through funding and asset quality shocks. This paper combines different stress scenarios, as well as cross-country analysis, to assess New Zealand bank vulnerabilities to the global crisis and the domestic recession. It finds that a sharp worsening of asset quality would be required to reduce bank capital below the regulatory minimum. On the funding side, a disruption to banks' offshore funding may put pressure on the exchange rate, but would not trigger a systemic liquidity problem.