A careful balancing act on how far banks should have to go to prepare for a rainy day. 

Parliament's Finance Select Committee is currently seeking feedback on whether the Reserve Bank's capital requirements for banks should be changed. 

The current rules are stringent and costly. 

Massey University banking expert Claire Matthews told Mike Hosking we also can't go too far the other way. 

She says if a bank fails, and there isn't enough money to pay people out, that will have a huge impact on the whole economy. 

LISTEN ABOVE 

A careful balancing act on how far banks should have to go to prepare for a rainy day.&nbsp;
Parliament's Finance Select Committee is currently seeking feedback on whether the Reserve Bank's capital requirements for banks should be changed.&nbsp;
The current rules are stringent and costly.&nbsp;
Massey University banking expert Claire Matthews told Mike Hosking we also can't go too far the other way.&nbsp;
She says if a bank fails, and there isn't enough money to pay people out, that will have a huge impact on the whole economy.&nbsp;
LISTEN ABOVE&nbsp;

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Open your mind to the world with New Zealand’s number one breakfast radio show. Without question, as New Zealand’s number one talk host, Mike Hosking sets the day’s agenda. The sharpest voice and mind in the business, Mike drives strong opinion, delivers the best talent, and always leaves you wanting more. The Mike Hosking Breakfast always cuts through and delivers the best daily on Newstalk ZB.

Open your mind to the world with New Zealand’s number one breakfast radio show.

Without question, as New Zealand’s number one talk host, Mike Hosking sets the day’s agenda.

The sharpest voice and mind in the business, Mike drives strong opinion,...

The Mike Hosking Breakfast

Claire Matthews: Massey University banking expert on whether the Reserve Bank's capital requirements for banks should be changed

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/bb214cc3-a3cf-4093-8c38-b2ac01367bc4/transcript