RBNZ Governor Adrian Orr said that the “significant capital and liquidity buffers” built up in the banking system before the coronavirus pandemic “buffers can now be used to support their customers’ long-term economic future”. Stress tests suggest that banks “banks can continue to lend and prosper through a broad range of adverse scenarios.”
Deputy Governor Geoff Bascand also said the Bank and the Government have been working with in number of initiatives to support the flow of lending and functioning of the financial system. “Our actions have included making bank funding plentiful and cheap, facilitating the deferral of loan payments, and ensuring cash was readily accessible nationwide,” he added.
