Reserve Bank of New Zealand interrupting the US political news!

  • Stress test shows nz banking system can withstand severe dairy downturn
  • NZ agricultural sector highly leveraged, poses structural risk
  • Stress test shows losses of between 3 to 8 percent of total dairy lending if payout remains low
  • Banks could write off between 12 to 25 percent of initial dairy lending if payout remains low
  • Bank losses likely absorbed through lower earnings than erosion of capital

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RBNZ sounding like they are trying to polish up bad news with this low

NZD dipping on these headlines