RTTNews - Tuesday, the Reserve Bank of New Zealand in its Statement of Intent said an enormous challenge looms in the inflationary risks once confidence returns to normal in global markets when there is so much liquidity around. Assessing the likely nature of a recovery, the central bank added that it would remain focused on risks.
The central bank said How long recovery will take is uncertain, though it is likely that it will be some significant time before economic activity returns to robust and healthy levels.
RBNZ revealed that it will develop and implement the new regulatory framework for non-bank deposit takers and insurance companies.
Acting Governor Grant Spencer said the policy sets various balance sheet requirements and disclosure obligations for banks around internal liquidity management. He sated,The purpose of the policy is to ensure that banks maintain strong liquidity positions, making them more resilient to both short term and long- lasting funding shocks.
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