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NZ's big banks would remain 'comfortably solvent' in a severe recession such as the one that hit the US between 2008-11, Moody's says

Bonds
NZ's big banks would remain 'comfortably solvent' in a severe recession such as the one that hit the US between 2008-11, Moody's says

By Gareth Vaughan

In an extremely severe recession, such as the one that hit the US between 2008 and 2011, New Zealand's major banks would need to rebuild capital but would comfortably remain solvent, says credit rating agency Moody's.

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1 Comments

This conclusion could be tested in reality within the next 2 years. 

Before the coming recession however, the big problem facing banks is the lack of appetite for borrowing from households and SMEs. 

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