The health of Australia's financial system is being watched carefully in New Zealand as the global credit crisis continues to bite.
The governor of New Zealand's Reserve Bank has given a trans-Tasman perspective on the global credit market shake-out to the same Sydney congress addressed yesterday by his Australian counterpart.
Alan Bollard says Australia's big banks are the pillars of the New Zealand financial sector and higher market interest rates and tighter credit are keeping authorities on alert.
"New Zealand's banks are basically Australasian banks, principally the four big Australian ones," he said.
"We'll watch the continued stability of the Australian financial sector."
Yesterday, Australia's Reserve Bank said local lenders were weathering the storm well, but it expected home loan arrears to head higher in the period ahead, with 40,000 borrowers already behind on their repayments.
Source: By Australian Broadcasting Corporation
Comment and add to the story without registration, but keep the comments meaningful please. Links are not accepted.
