Moody's: New Zealand's banking system stable

Reuters reports on the latest Moody's assessment on New Zealand's banking system, noting that it remains stable despite dairy sector distress and higher household leverage.

Daniel Yu, a Moody's Vice President and Senior Analyst, said: "Over the next 12-18 months, the banks' financial profiles will remain healthy on an absolute basis, and sound in relation to our expectations for their current ratings."

"While asset quality and profitability are likely to weaken, the deterioration will be from a very strong base," Yu added.