Capitalissues

Capitalissues

Debunking Kiwi Myths About Bank Capital: What ChatGPT Got Right

@cetier1
Mar 16, 2025
∙ Paid

The current debate on bank capital requirements in New Zealand follows a familiar script: high capital requirements drive up lending costs, slow economic growth, and reduce competition, with limited benefits. This view, echoed by bank executives, politicians, pundits, and some academics, oversimplifies a complex issue.

Bank capital isn’t a tax or an arbi…

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