Wednesday, August 20, 2008

Will New Zealand's banks be affected?

Today's warning from former IMF chief economist Kenneth Rogoff - that the worst of the global financial crisis has yet to come - makes me wonder to what extent New Zealand's big banks (all Australian-owned) will be affected.

"We're not just going to see mid-sized [US] banks go under in the next few months, we're going to see a whopper, we're going to see a big one, one of the big investment banks or big banks," Mr Rogoff told a financial conference.

Partly in response to the crisis, I have moved $10,000 from the ANZ Bank to government-owned Kiwibank - the safest bank in New Zealand, according to some commentators. I am going to cap my investment in the ANZ at $80,000.

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