March 18, 2020 / 4:49 AM / 11 days ago

BRIEF-Fitch Says Regulatory Measures Support New Zealand Banks, But Risks Remain

March 18 (Reuters) -

* FITCH SAYS REGULATORY MEASURES SUPPORT NEW ZEALAND BANKS, BUT RISKS REMAIN

* FITCH SAYS REDUCTION IN LENDING RATES WILL REDUCE BORROWING COSTS FOR SECTORS INCLUDING TOURISM, EDUCATION & AGRICULTURE IN NEW ZEALAND

* FITCH SAYS NEW ZEALAND GOVERNMENT AND OTHER REGULATORY AUTHORITIES WILL CONTINUE TO SUPPORT ECONOMY AND BANKING SYSTEM IN RESPONSE TO CORONAVIRUS PANDEMIC

* FITCH SAYS MANY BUSINESSES IN NEW ZEALAND WILL CONTINUE TO FACE CASH FLOW PROBLEMS DUE TO REDUCED DEMAND,WHICH WILL PUT PRESSURE ON BANKS’ ASSET QUALITY

* FITCH EXPECTS WEAKER PROFITABILITY AND PRESSURE ON RISK-WEIGHTS TO WEIGH ON CAPITALISATION OF SOME NEW ZEALAND BANKS OVER NEXT 12 MONTHS

* FITCH SAYS EXPECT RECENT DISRUPTION IN WHOLESALE MARKETS TO HAVE A MODEST IMPACT ON NEW ZEALAND BANKS’ FUNDING PROFILE

* FITCH SAYS RISKS TO NEW ZEALAND BANKING SECTOR HAVE INCREASED, REFLECTING CHALLENGES TO EARNINGS AND ASSET QUALITY Source text for Eikon:

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