Growth in offshore funding is creating risks – RBNZ
Financial stability report notes growing reliance of banks on offshore funding sources could become a problem
Banks in New Zealand increasingly turned to offshore markets for their funding in the past year, which is a potential source of risk for the financial system, the Reserve Bank of New Zealand (RBNZ) says in its financial stability report.
Published today (May 31), the report notes declining deposit growth in the past year has forced banks to tilt their funding mix towards foreign sources.
“A sharp reversal in risk sentiment could lead to higher funding costs for New Zealand banks and an
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