RBNZ examines financial system

  • Financial system is sound but continues to face risks
  • Banking system has strong capital and funding buffers, profits remain high
  • Banking system's reliance on offshore wholesale funding is beginning to increase
  • Financial markets have remained volatile due to political uncertainty
  • Banks could become susceptible to higher wholesale funding costs due to a rise in financial market volatility
  • Share of bank lending to customers with high debt-to-income ratios is rising
  • Debt-to-income restrictions could be warranted if housing imbalances were to deteriorate further
  • Indebtedness in the dairy sector has increase, leaving it vulnerable to shocks
  • House price inflation in Auckland has softened but it is uncertain if it will be sustained
  • There is a significant risk of further upward pressure on housing
  • Undertaking current review of bank capital requirements

I don't see any tradable headline here.

In any case, history has shown that central banks always miss the risks and potential problems until it's too late.