In short, the facts make it clear that there is no single, simple, explanation for the fall in the value of the New Zealand dollar over the last two or three years.
In the first quarter of this year the ratio of new bad debts to total bank lending remained stable at 2 per cent, a high value by comparison with the last ten years. We expect the flow of new bad debts to remain substantial in the coming months. The conditions of the markets and the economy continue to impinge on banks’ profitability.