New Zealand's banks should keep lending and resist the temptation to put profits first and hunker down during these difficult economic times, a top central banker warned on Friday.
In a speech, Reserve Bank of New Zealand (RBNZ) Deputy Governor Geoff Bascand said it was time for banks to drawdown prudently on the capital buffers that were built during good times to support customers in their time of need.
An unduly cautious approach to protect profitability would only worsen economic and financial stability, he added, while cautioning that shareholders would have to be patient for longer-term payoffs.
(Reporting by Wayne Cole; editing by Diane Craft)
