RBNZ: Banks need to maintain strong capital and funding buffers

Additional headlines from the Reserve Bank of New Zealand are crossing the wires, via Reuters:

• Banking system has strong capital and funding buffers and profitability remains high
• However the banking system’s reliance on offshore wholesale funding is beginning to increase due to a widening gap between credit and deposit growth
• Banks could become more susceptible to increased funding costs and reduced access to funding in the event of heightened financial market volatility.
• The share of bank mortgage lending to customers with high dti ratios has been increasing
• Currently undertaking a review of bank capital requirements
• Preliminary assessment is that New Zealand banks’ risk weighted capital ratios have been near or above international norms
• Capital review at an early stage, will consult publicly before decisions are made likely in early 2017