New Zealand’s stable and robust banking system stands strong against the uncertain implications of Brexit, says the New Zealand Bankers’ Association (NZBA).
“New Zealand’s banks are strong, well-funded and well regulated, and this stability positions them well in an environment of global uncertainty,” said New Zealand Bankers’ Association chief executive Karen Scott-Howman.
“Since the Global Financial Crisis there has been a renewed focus on ensuring risk is minimised and mitigated against within the banking industry. There have been numerous legislative and regulatory changes since the GFC, which resulted in substantial investment and resources by banks, including Reserve Bank of New Zealand’s requirement for banks to hold increased capital to help protect against volatility in international markets.”
New Zealand banks hold strong capital and liquidity buffers in excess of their regulatory requirements. Recent independent Reserve Bank of New Zealand stress tests suggest that “banks have sufficient capital to withstand a severe economic downturn” should it ever occur.
“New Zealand can have confidence in our banking system. Our banks were resilient in the GFC, and we remain well positioned to withstand any turbulence in the global economy,” Scott-Howman added.

The New Zealand Bankers’ Association (NZBA) supports the Government’s announcement today that it will take a considered approach to implementing recommendations on anti money laundering legislation, which were highlighted in its Inquiry into Foreign Trust Disclosure Rules.
“Banks already play their part in complying with domestic and international legislative requirements, and can attest that a considered approach works to achieve the best possible outcome in the fight against money laundering,” said New Zealand Bankers’ Association chief executive Karen Scott-Howman.
“This report encourages increased transparency in the professional and financial services sectors. This would also further align New Zealand with international best practice.”

Furthermore, NZBA said the recommendations delivered by the report that seek to strengthen international tax rules are to be welcomed.
“The report’s proposed strengthening of disclosure requirements for foreign trust accounts should minimise the likelihood of tax evasion and money laundering, and enable New Zealand to further protect its global reputation,” Scott-Howman added.

Financial Markets Authority