RBNZ’s Hawkesby: New Zealand banks resilient against most severe weather events

Reserve Bank of New Zealand (RBNZ) said on Monday that the capital ratios of the country's banks will remain resilient during most severe weather events though more studies were needed to understand how they could potentially compound with other risks to the financial system, per Reuters.

"As flood risk increases, the financial system is likely to face simultaneously a broader range of climate-related risks," the Reserve Bank of New Zealand (RBNZ) Deputy Governor Christian Hawkesby said in a statement per Reuters.

RBNZ’s Hawksby also said, “RBNZ's climate stress test, due out later this year, will help identify the combination of these risks to the balance sheets of banks.”

Markets remain resilient

NZD/USD struggles for clear direction near 0.6200 during early Monday, following a positive weekly close.