01958cas a2200253 a 4500 AALejournalIMF013290 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475561371 1018-5941 BD-DhAAL BD-DhAAL Jang, B. New Zealand Banks' Vulnerabilities and Capital Adequacy / B. Jang, Masahiko Kataoka. Washington, D.C. : International Monetary Fund, 2013. 1 online resource (23 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The paper finds that, given New Zealand's conservative approach in implementing the Basel II framework, New Zealand banks' headline capital ratios underestimate their capital strength. A comparison with Canadian, UK and Australian banks highlights the impact of New Zealand's more conservative approach. Stress tests in the paper show that four large New Zealand banks could withstand sizable stand-alone shocks to their exposure to either residential mortgages (calibrated on the Irish crisis experience) or corporate lending. However, combined shocks to both residential mortgages and corporate lending would put more pressure on the banks' capital. Given high bank concentration and large offshore wholesale funding needs, the merits of higher minimum capital requirements for systemically important domestic banks could be considered, together with other measures to be implemented. Mode of access: Internet Kataoka, Masahiko. IMF Working Papers; Working Paper ; No. 2013/007 Full text available on IMF http://elibrary.imf.org/view/journals/001/2013/007/001.2013.issue-007-en.xml IMF e-Library