Bank profitability will be challenged by increasing credit losses, but an unduly cautious approach to protect profitability is likely to worsen economic and financial stability. Notwithstanding the extraordinary nature of the pandemic, these risks confronting banks are familiar consequences of economic recessions. The potential for very low interest rates for a long period presents a new challenge in New Zealand.
Before I begin, I would like to ask you all to join our hands together and thank the Almighty because it is only due to His blessings that we could gather here to attend the seminar in good health and excellent condition.