Strong capital ratios - ratios that are well in excess of regulatory minimums have been a key factor in managing credit concentrations and a striking attribute of the most profitable community banks. More generally, the competitive drive to win borrowers should not be allowed to overcome the disciplines of prudent lending practice.
New Zealand is now in a privileged position of having successfully contained the virus and with many parts of the economy back up and running. But the economic shock from the COVID-19 pandemic continues to evolve.