Fitch: New Zealand’s high household debt a key risk, but its stable

The US-based Fitch ratings is out with its latest review on the New Zealand economy, with key highlights found below.

Capital proposals unlikely to affect New Zealand's major bank franchises.

High household debt in New Zealand is broadly stable but is a key risk.

Expect modest deterioration in asset quality in New Zealand over next year, in part because impaired loan levels are around historical lows.

The banks' strong domestic franchises allow for stable business model that helps offset continued high macroeconomic risks in New Zealand.

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