The Reserve Bank appears to have caved to pressure with its decision to review its capital requirements. 

The central bank introduced stricter rules in 2019, requiring banks to hold capital to buffer them against a 1-in-200-year financial crisis.  

The rules have been criticised for driving up lending costs. 

Former Reserve Bank economist Michael Reddell told Mike Hosking there's been a clear appetite for change. 

He says the Reserve Bank has "read the tea leaves", including criticism it's faced from banks, businesses, and Finance Minister Nicola Willis herself. 

LISTEN ABOVE 

The Reserve Bank appears to have caved to pressure with its decision to review its capital requirements.&nbsp;
The central bank introduced stricter rules in 2019, requiring banks to hold capital to buffer them against a 1-in-200-year financial crisis. &nbsp;
The rules have been criticised for driving up lending costs.&nbsp;
Former Reserve Bank economist Michael Reddell told Mike Hosking there's been a clear appetite for change.&nbsp;
He says the Reserve Bank has "read the tea leaves", including criticism it's faced from banks, businesses, and Finance Minister Nicola Willis herself.&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

Michael Reddell: Former Reserve Bank economist on the central bank reviewing its capital requirements

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/1953f86f-fe12-4bb4-814e-b2b1013e609d/transcript