01913cas a2200241 a 4500 AALejournalIMF017625 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475598834 1934-7685 BD-DhAAL BD-DhAAL International Monetary Fund. Monetary and Capital Markets Department. New Zealand : Financial Sector Assessment Program: Financial System Stability Assessment. Washington, D.C. : International Monetary Fund, 2017. 1 online resource (92 pages) IMF Staff Country Reports <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 This paper presents an assessment of the stability of the financial system in New Zealand. Imbalances in the housing market, banks' concentrated exposures to the dairy sector, and their high reliance on wholesale offshore funding are the key macro-financial vulnerabilities. The banking sector has significant exposure to real estate and agriculture, is relatively dependent on foreign funding, and is dominated by four Australian subsidiaries. A sharp decline in the real estate market, a reversal of the recent recovery in dairy prices, deterioration in global economic conditions, and tightening in financial markets would adversely impact the system. Despite these vulnerabilities, the banking system is resilient to severe shocks. Strengthening the macroprudential framework is important. Mode of access: Internet IMF Staff Country Reports; Country Report ; No. 2017/110 Full text available on IMF http://elibrary.imf.org/view/journals/002/2017/110/002.2017.issue-110-en.xml IMF e-Library