RBNZ’s Bascand says banks now less reliant on offshore funding

New Zealand’s financial sector is less susceptible to a funding shock, thanks a reduced reliance by banks on offshore funding, a deputy governor of the Reserve Bank of New Zealand (RBNZ) has said.

Speaking in Wellington today (July 17), Geoff Bascand said banks have been “actively” reducing their reliance on offshore funding, particularly at short maturities, to “reduce risk and respond to regulatory changes”.

Bascand acknowledged that in the wake of the global financial crisis, a lower demand