Reserve Bank Governor Alan Bollard has reassured depositors that New Zealand's banking system is sound, arguing our banks were owned by strong Australian parents and were relatively simple without any "hidden nasties." "We do have a lot of advantages in New Zealand because we're got a fairly vanilla, simple banking system, so we don't think there's hidden nasties here at all," Bollard told Radio New Zealand National in an interview this morning. Bollard said international credit markets had seen unprecedented volatility, but the bank payments system was operating normally and inter bank lending in Australasia had not been affected as severely as for banks in the Northern Hemisphere. "We're all on watch at the moment. The New Zealand banking system is sound. It's got Australasian banks that have very good quality credit risks and we're not expecting particular problems out of that," Bollard said.
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