Original article by Sarah Turner
The Australian Financial Review – Page: 21 : 1-Mar-19
New Zealand has traditionally been a cash cow for Australia’s major banks, but experts warn that profit growth could be dampened by the Reserve Bank of New Zealand’s proposal to increase their capital requirements. Westpac has warned that any move to impose higher capital buffers could push up interest rates on loans and result in a downturn in deposit rates. The RBNZ has downplayed concerns that it proposal may prompt Australian banks to exit the NZ market.
RESERVE BANK OF NEW ZEALAND, WESTPAC BANKING CORPORATION – ASX WBC, NEW ZEALAND INITIATIVE, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, JP MORGAN AUSTRALIA LIMITED