NZB Funding Costs and Margins

On Monday the Reserve Bank of New Zealand announced an analysis of interest rate margins. Alan Bollard, Reserve Bank Governor stated, that the bank released this analysis to respond to a number of issues received regarding the stance on what room there still is for interest rate swaps. The paper notes the Reserve Bank is continuing to talk to the banks to clarify new trends in their funding costs and margins. The Bank Governor promised to review these matters further in the Bank's Financial Stability Report that is expected to be issued November 2009.