The results of the 2017 stress test suggest that the four main New Zealand banks could absorb material losses in a downturn while remaining solvent. 13  Adapting to emerging risks Establishing a baseline standard of resilience is not a set-and-forget exercise.
It needs to be re-visited from time to time to ensure it is still appropriate – as we are doing with our capital review and as we will with our liquidity review next year.