Recent developments in New Zealand's financial stability

Release date
Vol. 65. No. 3. September 2002
Aron Gereben; Leslie Hull; Ian Woolford
This article assesses the current state of, and threats to, financial stability in New Zealand. It does this against the backdrop of a particularly uncertain external environment. It concludes that, despite the current slowdown in global activity, substantial falls in international share prices, and high profile corporate failures, there do not appear to be any immediate concerns for financial stability locally: banks are well capitalised, corporate balance sheets appear healthy, and although household leverage is high by international standards, it has been stable recently.