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Calculated risk: will the next Reserve Bank governor relax capital requirements for banks?

By Claire Matthews, Associate Professor and Head of School, School of Accountancy, Economics and Finance, Te Kunenga ki Pūrehuroa – Massey University

New Zealand’s capital requirements are meant to ensure banks survive a 1-in-200-year event. The next Reserve Bank governor will need to weigh the costs of relaxing the rules.

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