BRIEF-RBNZ Says New Zealand Financial System Well Placed To Handle Higher Interest Rate Environment

Reserve Bank of New Zealand: * NEW ZEALAND'S FINANCIAL SYSTEM IS WELL PLACED TO HANDLE THE HIGHER INTEREST RATE ENVIRONMENT AND INTERNATIONAL FINANCIAL DISRUPTIONS

* GLOBAL INFLATION IS PERSISTING AT LEVELS WELL ABOVE CENTRAL BANKS' POLICY TARGETS * CASH FLOW PRESSURES AMONG HOUSEHOLDS AND IN SOME BUSINESS SECTORS ARE GROWING

* ALTHOUGH CENTRAL BANKS HAVE SLOWED PACE OF TIGHTENING RECENTLY, FULL EXTENT OF IMPACT OF PREVIOUS TIGHTENING IS STILL TO BE SEEN * NZ'S BANKS NOT MATERIALLY EXPOSED TO SAME INTEREST RATE RISKS WHICH HAVE CONTRIBUTED TO SOME RECENT BANK FAILURES IN U.S.

* HOUSE PRICES HAVE CONTINUED TO DECLINE AND ARE CLOSER TO BEING AT SUSTAINABLE LEVELS THAN HAS BEEN THE CASE IN RECENT YEARS * TO DATE THERE HAVE BEEN LIMITED SIGNS OF DISTRESS IN BANKS' LENDING PORTFOLIOS, WITH ONLY SMALL SHARE OF BORROWERS FALLING BEHIND ON PAYMENTS

* NEW ZEALAND'S FINANCIAL SYSTEM AS A WHOLE HAS BEEN RESILIENT TO EXTREME WEATHER EVENTS * NEW ZEALAND BANKING SYSTEM'S CAPITAL AND LIQUIDITY POSITIONS ARE STRONG, WITH PROFITABILITY AND ASSET QUALITY REMAINING HIGH

* NEW ZEALAND'S FINANCIAL INSTITUTIONS ARE WELL POSITIONED TO CONTINUE TO TAKE A LONG-TERM PERSPECTIVE * EXTREME WEATHER EVENTS HIGHLIGHTS ONGOING NEED FOR WORK TO BETTER UNDERSTAND AND MANAGE, WEATHER AND CLIMATE RELATED RISKS

* NEW ZEALAND'S FINANCIAL INSTITUTIONS ARE WELL POSITIONED TO SUPPORT THEIR CUSTOMERS THROUGH THE CURRENT ECONOMIC CHALLENGES Further company coverage: