Banks could face billions in write-offs, and may have to go to their owners for extra cash, under a grim scenario for the dairy sector.
On Wednesday the Reserve Bank revealed its stress tests for New Zealand’s major rural lenders about the impact of dairy prices staying low for years to come.
The tests are theoretical assessments of how the banks are equipped to cope if conditions do not improve. Although the Reserve Bank found that the sector was “robust” in the face of a sharp increase in bad debts, it warned the banks could be left managing large amounts of land for years and have most of their profitability wiped out.
Net migration surges to yet another record high of 67,391 in February year as long term arrivals keep rising, departures stabilise
The country’s migration-fuelled population grew by a record 67,391 people in the year to February, driven by on-going growth in new arrivals.
The latest figures from Statistics NZ show that 124,245 migrants arrived in this country on a permanent and long term basis in the year to February, with that number increasing by about 50% since the year to February 2011 when there were just 82,772 arrivals.