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Immunised from Banking Lurgy? Ep 335 David Tripe

NZ Everyday Investor

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The Banking Crisis in New Zealand

David Tripe is a professor of banking studies at the School of Economics at Finance at Massey University. He says New Zealand banks should not be worried about what happened with Silver Gate SVB and Signature Bank in the US. The problem was that they bought securities which had more or less a fixed interest rate while interest rates were low, but then ceased to be nearly as profitable in activity. That meant that they were potentially facing a shortfall because the value of those securities that they purchased fell as interest rates rose.

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