must say it still leaves nz very exposed to a gfc still. nz does not have a deposit insurance scheme , the new capital requirements only just make nz banks comparable to international norms.
all in all nz banking system is a big risk to the country well being if something goes wrong with say the property market etc
i know from the gfc that a nz bank was within inches of going bust.
further article intos afr stating banks will force rbnz to back down
that make nz banking system very at risk when things go south. be watching with interest might have to have my overseas bank acc at a safer institution ready just in case one day a event happens.
Makes for a depressing read but there are sound reasons to be quite cautious going into 2019 so forewarned is forearmed. I am very defensive going into the new year with around 50% cash allocation and mainly defensive holdings in defensive sectors such as in healthcare, OCA, REIT's ARG, consumer staples ZEL, utilities MEL and GNE and only modest stakes in transports AIR, and financials HGH.
The vast majority of my stocks held are aimed at returning a strong sustainable and in some cases growing yield. I expect 2019 to be another tough year on the NZX.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
Makes for a depressing read but there are sound reasons to be quite cautious going into 2019 so forewarned is forearmed. I am very defensive going into the new year with around 50% cash allocation and mainly defensive holdings in defensive sectors such as in healthcare, OCA, REIT's ARG, consumer staples ZEL, utilities MEL and GNE and only modest stakes in transports AIR, and financials HGH.
The vast majority of my stocks held are aimed at returning a strong sustainable and in some cases growing yield. I expect 2019 to be another tough year on the NZX.
2019 might be tough but 2020 will be the real cruncher IMO.
must say it still leaves nz very exposed to a gfc still. nz does not have a deposit insurance scheme , the new capital requirements only just make nz banks comparable to international norms.
all in all nz banking system is a big risk to the country well being if something goes wrong with say the property market etc
i know from the gfc that a nz bank was within inches of going bust.
further article intos afr stating banks will force rbnz to back down
that make nz banking system very at risk when things go south. be watching with interest might have to have my overseas bank acc at a safer institution ready just in case one day a event happens.
When you say this will make NZ comparable to "international norms"
It appears from this article we will be better than that ?
nz is one of the only western economies without a deposit insurance scheme , so even with the increased capital doesnt mean you wont still lose all your money in deposits. therefore i view it as still inferior to some overseas banking.
capital can disappear very fast from banks balance sheets in an big event. imagine if they do nothing how exposed you are currently to losing all your money.
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