Cameron Bagrie Says Primary Sector Leading NZ Economic Recovery
The primary sector is leading New Zealand's economic recovery, according to economist and researcher Cameron Bagrie.
That number is 0.08%, the ratio of impaired asset expense to average gross loans and advances.
Bagrie says this is incredible considering the economy is supposed to have experienced the worst economic climate since the global financial crisis.
"What risk have banks been taking?" he asks.
The low impairment charges and lift in banks' profitability tells a fundamentally different story relative to the economy's performance.
"We are not going to get an appetite to take risk in this economy - which is desperately needed - if the banking sector is not on board taking risk."
