WELLINGTON (Reuters) - Reserve Bank of New Zealand governor Adrian Orr said on Friday that the bank needed to ensure there is sufficient capital in the banking system to match public risk tolerance.
"We can improve the soundness of the New Zealand banking system by requiring banks to hold more capital with no trade-off to efficiency," Orr said in a speech to business executives in Auckland.
The RBNZ will release a consultation paper on bank capital in mid-December. Orr at a half-yearly financial stability review on Wednesday said bank capital requirements needed to be higher.
(Reporting by Charlotte Greenfield and Wayne Cole; Editing by Sam Holmes)
