RBNZ Stress Test Confirms Top Banks’ Resilience Against Geopolitical Shocks

Key TakeawaysNew Zealand's five largest banks have demonstrated robust resilience against severe geopolitical risks, with their capital levels remaining above regulatory minimums even under extreme stress scenarios, according to the Reserve Bank of New Zealand's (RBNZ) 2025 Bank Industry Stress Test results.The stress test included a scenario where the New Zealand economy contracted by 6.5% over three years, unemployment surged to 10.5%, and house prices plummeted by 35%.A new feature of this year's test co ...