The Reserve Bank is still optimistic, with crises at home and abroad

A financial stability report by the regulator warns wars, trade disputes and cyber attacks are at the top of bank risk lists.

The economy could take a further downturn, and rising unemployment may push more mortgage defaults.

But deputy governor, Christian Hawkesby, has told the finance committee - they believe banks can still stand by their customers.

He says the Reserve Bank is confident New Zealand's financial system is resilient - and able to face future challenges.