16 To date these exercises have centred on the four largest New Zealand banks – reflecting that they  account for around 90% of banking system assets. The scenario we used for the stress test in 2017 set a high bar.
It asked banks to consider how they would fare if there was a downturn in the Chinese economy, collapse in demand for commodity exports, a rapid increase in unemployment, a 35% fall in house prices, a two notch downgrade in their credit rating downgrade, a spike in funding costs, and a significant misconduct event related to residential mortgages.