Nov 3 (Reuters) – A bank solvency stress test conducted by the Reserve Bank of New Zealand found the country’s five largest banks are well placed to withstand the impact of heightened geopolitical risks, the central bank said on Monday.New Zealand central bank is responsible for the prudential supervision and regulation of the country’s banks. It undertook the stress tests of ANZ (ANZ.AX), opens new tab, Bank New Zealand owned by National Australia Bank (NAB.AX), opens new tab, ASB Bank owned by Commonwealth Bank of Australia (CBA.AX), opens new tab, Kiwibank and Westpac New Zealand (WBC.AX), opens new tab as part of its twice yearly financial stability review.
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“Large banks have built up capital levels over the past decade and are well placed to withstand a severe scenario… induced by worsening geopolitical risks,” the review found.It added it would, however, take some time and significant actions to restore capital ratios to the current levels.
Reporting by Himanshi Akhand in Bengaluru; Editing by Chris Reese and Diane Craft
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