RBNZ's Bascand: Expects ‘some time' before full economic recovery

Ross J Burland FXStreet

RBNZ's Bascand expects ‘some time' before full economic recovery.

Other comments

Time for banks to drawdown prudently on buffers to support customers.
Shareholders will have to be patient for longer-term payoffs.
Banking sector must confront long-term low interest rates.

Full Speech

The COVID-19 health crisis has posed significant challenges for the New Zealand economy and financial system and we expect it will take some time before we see a full recovery. The immediate operational challenges for the financial sector have been successfully overcome and the system has proved resilient so far, in part resulting from a stronger regulatory framework and favourable economic conditions over the past decade.

As we gradually move past the challenges currently facing the banking sector, we expect issues such as alternative monetary policy, accelerating digitisation and new competitive challenges will shape the banking sector in the years to come.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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