Average funding costs for banks in New Zealand have increased by 170 basis points since the financial crisis in 2008, analysis by the Reserve Bank of New Zealand shows.
An article in the RBNZ's quarterly Bulletin estimates the cost of funds over the last decade, measured as a spread to its targeted official cash rate.
Over the six years to 2008, and before the demise of Lehman Brothers, banks could fund at an average rate of 60 basis points below the OCR.
In the three...
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