Global economic and financial conditions continue to pose risks for New Zealand’s financial system, Reserve Bank Governor Alan Bollard said today when releasing the May 2012 Financial Stability Report. “Financial market sentiment has improved since the start of 2012, largely reflecting policy measures in Europe which have helped to mitigate the effects of softening economic growth, stretched sovereign debt positions and weak bank balance sheets. However, the situation remains fragile given limited progress in addressing Europe’s underlying issues. “In New Zealand, households remain cautious and have been saving more ... (full story)