NZ banks resilient against most severe weather events -central bank

New Zealand's central bank said on Monday the capital ratios of the country's banks will remain resilient during most severe weather events though more studies were needed to understand how they could potentially compound with other risks to the financial system. "As flood risk increases, the financial system is likely to face simultaneously a broader range of climate-related risks," the Reserve Bank of New Zealand (RBNZ) Deputy Governor Christian Hawkesby said in a statement.

RBNZ's climate stress test, due out later this year, will help identify the combination of these risks to the balance sheets of banks, Hawkesby said.

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