TEXT-RBNZ says financial system sound, functioning well

  WELLINGTON, Aug 21 - The New Zealand financial system is fundamentally sound and continues to function well, despite recent headlines of financial stresses, Reserve Bank Head of Prudential Supervision, Toby Fiennes, said today. & quot;Speaking to an Auckland business audience, Mr Fiennes said investors have been hurt and others unsettled by recent failures of local financial firms, frozen mortgage trust funds, and potential bad debt provisions by international banks.  

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