Karen Scott-Howman, chief executive of the Bankers’ Association, acknowledged the role banks play in fighting financial crime but said customer privacy and confidentiality was taken seriously.
NZBA submits that the Guidance Note should retain its current level of flexibility in recognition of the fact that sales conversations can evolve differently. NZBA would not like to see further prescriptive steps or ‘checklists’ added as a result of consultation, which will not necessarily further the objective of providing simple or better advice to consumers.
The review will cover the definition of capital, the measurement of risks that the banks face and the minimum capital requirements and buffer,” said Reserve Bank Deputy Governor Grant Spencer in a speech to the New Zealand Bankers’ Association in Auckland.
Inland Revenue Department
Bank customers can be confident about the protection of their private financial information held by banks despite a decision saying Westpac got it wrong in relation to political activist Nicky Hager, says the New Zealand Bankers’ Association.
KPMG’s Financial Institutions Performance Survey for the 2016 financial year has found that the strength of the New Zealand banking sector continues to underpin its performance.
“The strength of New Zealand’s banks continues to provide a solid platform for our economic growth. Our banks are well capitalised and regulated, and highly competitive. That means they’re well-placed to meet the needs of businesses and households,” says New Zealand Bankers’ Association chief executive Karen Scott-Howman.
Overall profits in the sector were down in the last year. This was due to tightening margins, a decrease in non-interest income, rising operating costs, provisioning for bad loans, and global market volatility.
The average interest rate margin dropped from 2.28 to 2.15%, which was driven by strong competition and the rising cost of funding. Lending competition remains strong in an environment where interest rates are tipped to rise gradually.
“Interest rates are still at historic lows. It’s a good time to assess your circumstances and get your finances in order so you can manage any increase in the cost of borrowing.”
The report also identified further digitisation and innovation in banking services as a focus for 2017.
“This innovation is largely driven by changes in customer behaviour and preferences, along with competition inside and outside the banking sector. Banks need to keep their customers happy in this highly competitive environment. To enhance customer experience they’re constantly looking at ways to improve banking services,” says Scott-Howman.
Standards New Zealand
The banks, through their industry lobby the New Zealand Bankers’ Association, sought another round of consultation “to work out the detail of the disclosures required, in particular to ensure that the disclosures are comparable between banks with different structures, and to address any other issues that will likely arise.”
“Fraudsters are always looking for new ways to trick people into providing confidential information which allows them to access bank accounts.”
NZBA advises people to never give out confidential information such as PIN numbers or bank account usernames.
Inland Revenue Department