{"id":25444,"date":"2020-05-27T12:08:20","date_gmt":"2020-05-27T00:08:20","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=25444"},"modified":"2024-03-01T20:50:35","modified_gmt":"2024-03-01T07:50:35","slug":"unemployment-could-rise-to-18-per-cent-house-prices-could-halve-new-zealand","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/unemployment-could-rise-to-18-per-cent-house-prices-could-halve-new-zealand\/","title":{"rendered":"Unemployment could rise to 18 per cent, house prices could halve | NEW ZEALAND"},"content":{"rendered":"

PHOTO: ROSS GIBLIN\/STUFF <\/cite>Banks are fine for now,\u00a0 but a scenario that saw a protracted return to tighter lockdowns could challenge them, the Reserve Bank believes.\u00a0\u00a0<\/strong><\/p>\n

Unemployment could rise to 18 per cent, house prices could halve, and the viability of the banks could be “called into question” if the coronavirus prompted a further period of economic lockdowns, the Reserve Bank<\/a> has warned.<\/p>\n

The Reserve Bank said in the central bank’s annual report on financial stability published on Wednesday that banks had coped well with the coronavirus pandemic so far.<\/p>\n

But under “severe enough scenarios, the viability of banks would come into question”, it warned.<\/p>\n

\"Mortgage<\/a><\/div>\n
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How best to take advantage of the banks mortgage wars | WATCH<\/a><\/h2>\n<\/header>\n<\/div>\n

In the event of its worst-case lockdown scenario “initial modelling suggests that, without significant and timely mitigating actions, banks would fall below minimum capital requirements under this scenario,” it said.<\/p>\n

The Reserve Bank<\/a> has also cautioned that some other financial institutions that take deposits from the public, and some life insurers, are already more vulnerable.<\/p>\n

READ MORE VIA STUFF<\/a><\/p>\n

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