Prepared by Dmitriy Rozhkov (Ext. 3-9745).
Data from 2001 are not fully comparable to earlier data due to methodological changes.
Hedging information is collected by Statistics New Zealand from a survey of corporations. In 2005, the survey covered 87 percent of foreign currency debt.
Registered banks in New Zealand are required to maintain a minimum tier-one capital ratio of 4 percent and a total capital ratio of 8 percent of risk-weighted assets.
New Zealand banks are required to have credit ratings independent of their foreign parents.
Preliminary data show that household indebtedness reached 150 percent of disposable income at end-2005.
Reserve Bank of New Zealand, Financial Stability Report, November 2005, provides indicators of housing valuation.
New Zealand: Financial Sector Stability Assessment, IMF Country Report No. 04/126. The stress tests were based on 2003 data, but the authorities’ analysis suggests that the risks to bank capital have not increased substantively since then.