Fitch on NZ - says high household debt a key risk, but its stable

Author: Eamonn Sheridan | Category: News

Fitch ratings: 

  • capital proposals unlikely to affect New Zealand's major bank franchises
  • says high household debt in New Zealand is broadly stable but is a key risk
  • says expects modest deterioration in asset quality in New Zealand over next year, in part because impaired loan levels are around historical lows
  • the banks' strong domestic franchises allow for stable business model that helps offset continued high macroeconomic risks in New Zealand
The capital requirement Fitch refers to kick in in a few years time.  Its the debt and the asset quality comments of more interest. Only marginally so though. 

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