Quote Originally Posted by GTM 3442 View Post
Out of idle curiosity, does the RBNZ run stress tests on the banks registered in New Zealand?

I seem to recall that some were done a couple(?) of years ago, but I've heard nothing since.

Perhaps there's been another round and some banks failed?
I read an article saying they do. The writer was therefore a bit bemused by this tinkering, because the banks had been passing them. He wondered whether the RBNZ sees something more calamitous than is already factored into their models. Those models contained extreme scenarios around house prices and dairy payouts along with a bunch of other stuff.