Ministry of Justice
Debt can finance personal, household and business needs and aspirations. That’s the New Zealand Bankers’ Association’s response to Money Week’s big question: what does debt do for you?
“We often need to borrow money to buy our own home or get a business off the ground. That’s the kind of debt our banks are here to support,” says New Zealand Bankers’ Association chief executive Karen Scott-Howman.
“This is often seen as ‘good debt’. Borrowing for something that’s likely to retain or grow in value over time makes sense. Borrowing for things that will lose value, or ‘dumb debt’, isn’t such a good idea.
“As responsible lenders, banks work hard to ensure their customers know what they’re signing up to when they take out a loan. Being clear on your obligations as a borrower is really important.
“Banks are always willing to provide advice about the lending products and services that are right for your particular circumstances. It’s worth having a chat and checking out your options.”
Tips for managing debt include:
- having a plan to pay off your loans
- asking your bank how you can be debt-free faster
- avoiding ‘dumb debt’
- only borrowing for what you need.
Money Week is organised by the Commission for Financial Capability and runs from 14 to 20 August.
More information is available at: www.sorted.org.nz/moneyweek
ENDS
August 12, 2017 – Climate change is recognised as a potential financial risk by New Zealand banks and the NZBA is working with groups such as Deep South Challenge to get a greater understanding of the risks from climate change on investments, said chief executive Karen Scott-Howman.
The Banking Ombudsman Scheme has been providing a free and independent disputes resolution service for 25 years. That’s an important milestone for banks customers, and something worth celebrating, says the New Zealand Bankers’ Association.
“The Banking Ombudsman has made an incredibly valuable contribution to banking in New Zealand since 1992,” says New Zealand Bankers’ Association chief executive Karen Scott-Howman.
“If customers have a problem with their bank, and are not happy with the bank’s response, they can take the issue to the Banking Ombudsman to sort out.
“Banks understand that customer trust and confidence are essential to their ongoing success. The scheme helps support that by providing an impartial disputes resolution service that’s free for customers.
“New Zealanders rate their own banks highly. That’s not just because they’re strong, efficient and well-regulated. It’s also because banks work hard to keep their customers happy, which includes putting right any problems quickly and fairly.
“The Banking Ombudsman Scheme goes hand in hand with NZBA’s Code of Banking Practice, which sets out what customers can expect from their banks as a minimum industry standard.”
The Banking Ombudsman also provides practical customer guidance and information on a range of banking issues.
More information about the Banking Ombudsman Scheme is available at www.bankomb.org.nz.
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Financial Markets Authority
Customer trust and confidence in banks are essential to the industry’s ongoing success. For the last 25 years the Code of Banking Practice and the Banking Ombudsman have played a crucial role in improving customer outcomes by setting minimum industry standards and resolving customer issues. They have both helped build trust and confidence. Here’s to another 25 years of better banking.
The New Zealand Bankers’ Association has struck a surprisingly aggressive tone in its initial submission on the Reserve Bank’s review of banks’ capital adequacy requirements.
Finance and Expenditure Select Committee
New tax law that comes into force on 1 July will require banks to provide Inland Revenue with tax information for certain customers.
The new law, aimed at reducing global tax evasion, means that banks and other financial institutions will need to identify accounts held by foreign tax residents. They will then have to report information about those customers to Inland Revenue, which will in turn share that information with other countries’ tax agencies that are party to the information sharing agreement.
The tax information sharing scheme is reciprocal, and other countries will report to Inland Revenue on New Zealand tax residents in their jurisdictions.
“The policy behind this legal requirement is designed to combat tax evasion around the world. The banking industry supports that goal,” says New Zealand Bankers’ Association chief executive Karen Scott-Howman.
“It means that banks may ask existing customers to confirm if they are tax residents in countries other than New Zealand. It also means that banks will ask new customers after 1 July to self-certify their country or countries of tax residence.”
Under the law, customers identified as foreign tax residents will need to provide banks with their date of birth and foreign taxpayer identification number.
The so-called ‘Automatic Exchange of Information’ (AEOI) adopts the Common Reporting Standard (CRS) to share information among participating countries.
At this stage Inland Revenue will be sharing information with 58 other jurisdictions. The information must be reported to Inland Revenue by 30 June every year, with the first exchange of information taking place in 2018.
A factsheet for customers who hold or control accounts at banks and other financial institutions is available from Inland Revenue at:
More information about AEOI is available at:
http://www.ird.govt.nz/campaigns/2017/aeoi.html
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Ministry of Business, Innovation and Employment