House price vulnerability: S&P
It has released its latest outlook for the New Zealand banking sector.
The banks are likely to suffer a low level of credit losses over the next few years, even though interest rates are set to rise, S&P analyst Nico De Lange says.
But he said there was the threat of a sharp fall in house prices, especially if there is an external shock to the economy.
"Consequently, we consider the stand-alone credit profiles of all banks and credit unions in New Zealand as remaining subject to negative pressures, as reflected in a negative rating outlook on a number of these banks and credit unions.”
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
