Inland Revenue Department
ANZ Bank New Zealand CEO David Hisco has been elected chair of the New Zealand Bankers’ Association (NZBA) for 2016/17. Westpac New Zealand CEO David McLean was also elected deputy chair.
Mr Hisco takes over the position from Bank of New Zealand CEO Anthony Healy, who was chair during the 2015/16 financial year.
NZBA’s acting chief executive Antony Buick-Constable said, “The NZBA provides a forum for member banks to work together on non-competitive industry issues, which include helping to maintain the balance between workable regulation and economic growth.”
He said New Zealand had one of the soundest financial systems in the world, which was critical in the current volatile international environment.
“New Zealand’s banks are well capitalised and regulated. That’s vital for the functioning of the New Zealand economy – banks play an important role in helping people to buy homes, start new businesses, grow companies, employ people, and plan for retirement,” Mr BuickConstable added.
Established in 1891 the NZBA has 15 members, all of which are banks registered under the Reserve Bank of New Zealand Act 1989. Its governing body is its council, comprising the chief executive of each member bank. In addition, the NZBA has seven affiliate memberships with other organisations involved with the banking industry.
The New Zealand Bankers’ Association (NZBA) says we could all benefit from taking time to think about building our nest egg and saving for our future, and the long Easter weekend is the ideal time to do so.
“It’s good to take time to think about your financial future and set personal financial goals. By making a plan and managing your money, you can get ahead to save for short terms goals like a holiday, or think longer term to build a nest egg for a home deposit or your retirement,” said Antony Buick-Co stable, acting chief executive of the New Zealand Bankers’ Association.
“Online tools are a useful resource to assist with planning your personal financial goals. If you are looking for information about managing your money and making informed financial decisions, your bank is a great place to start,” Buick-Constable added.
Build your nest egg and get ahead with these money management tips:
- Set short and long term financial goals. Think about what you want in life and how your money decisions can support you to achieve that. Write down your short and long term goals. Think about what you need to do or change to succeed.
- Hatch a plan. The ultimate tool to help achieve your financial goals, increase savings or reduce debt is a budget. Take time to review how, when and where you spend your money. Tracking your expenses allows you to set a realistic budget and identify the areas where you can make changes. Making your lunch or cutting back on a coffee each day could save you thousands each year – it all adds up faster than you think! Most importantly, once you have set your budget you need stick with it. By staying with your plan you will soon see progress toward your goals. There are useful budget planning resources at www.sorted.org.nz or on your bank’s website.
- Grow your nest egg. Have short and long term savings goals. Whether you’re saving toward a much-needed holiday or a deposit for a house, by staying focused and committed to your goals you will see results. If you haven’t started saving for your retirement, it’s never too late – hop to it! For more information visit www.kiwisaver.govt.nz
- Manage debt. Take time to review any debt that you hold and make it your goal to be debt-free. Talk with your bank about how to get debt-free fast. Avoid ‘dumb debt’ and only ever borrow what you need and plan to pay it off as quickly as you can.
Having a nest egg can be a good investment for your future. So hop to it and take some time
this Easter to hatch a plan!
The Reserve Bank of New Zealand’s (RBNZ) ‘Summary of the dairy portfolio stress testing exercise’ released today has found that the scenarios tested were manageable for banks, and stated our banking system is robust.
It showed that New Zealand’s five largest rural lender banks are well placed to continue supporting farming customers through current challenges, as well as any severe circumstances in the dairy sector should they occur.
Since the Global Financial Crisis, there have been numerous legislative and regulatory changes for banks, including the requirement for banks to hold increased capital against their lending. This additional capital comes at a significant cost for banks, but this provides the banking system with a greater ability to cope with periods of stress.
“Banks with large dairy portfolios remain resilient, well-funded, and are well-positioned to continue working with dairy farmers through any further movements in dairy prices,” said New Zealand Bankers’ Association acting chief executive, Antony Buick-Constable.
“Banks are regular participants in RBNZ stress testing exercises, and also conduct their own stress tests – this contributes to a stable and robust banking system. Our banks understand the volatility and complexity of the dairy sector, and plan for this accordingly.
Despite the current lows in the dairy cycle, the longer-term outlook for dairy and protein production remains positive. It’s important to keep this bigger picture in mind and support our farmers during tough times, and that’s exactly what our banks do,” he added.
Banks continuing to support farmers
Banks work closely and constructively with their dairy farming customers to understand individual situations and needs. This includes helping to ensure business plans and banking arrangements reflect the conditions they are experiencing, and assisting them to make adjustments and reduce costs in o der to maintain a sustainable business.
“Banks are continuing to work closely with farmers facing financial challenges to see how they can work together through their current circumstances, in order to maintain the viability of their businesses. It’s very much in the banks’ interests to support farmers through both the tough times and the good. Banks will continue to play a key role in helping facilitate business sustainability and growth for farmers and New Zealand,” said Mr Buick-Constable.
A range of potential measures is available across the banking sector for farmers in financial stress, and these will vary from case to case. Depending on individual circumstances, banks might be able to look at reducing or suspending principal payments on loans and temporarily moving to interest-only payments. Banks might also consider allowing term deposits to be broken without associated costs. Banks can also help by providing affected farmers with financial management and budgeting assistance, and access to workshops on enhancing farm productivity and performance.
In times of financial stress, two-way communication is essential to help farmers facing challenges. Farmers who find themselves in financial difficulty or with a change in their financial outlook should speak with their bank as early as possible to find out whether specific assistance is available for them. Support for farmers is also available from a range of other organisations including Rural Support Trusts, Federated Farmers, DairyNZ, and the Ministry for Primary Industries.
The banking sector understands, and proudly supports, the huge contribution that the farming sector makes to our national economy. Banks have a long history of working with farmers to support their businesses and providing financial services to the farming sector, and this relationship will continue.
Ministry of Business, Innovation and Employment .
KPMG’s Financial Institutions Performance Survey for the 2015 financial year has found that New Zealand’s competitive banking sector stands as one of the strongest in the world.
“New Zealand’s banks have remained stable and self-sufficient against the stresses of fluctuations in the global environment,” said Antony Buick-Constable, acting chief executive of the New Zealand Bankers’ Association.
“Our banks are among the best capitalised and reputed in the world – and that’s good for us and good for the economy. This also means our banks are well-placed to remain resilient against any global and local challenges that lie ahead.”
“Bank profits are indicative of the banking industry’s stability and strength. In addition to supporting the growth of our economy, profits allow banks to continue investing heavily in New Zealand. In 2015, banks made a direct contribution of around $7 billion to the New Zealand economy.”
“Banks directly employed 25,000 New Zealanders and purchased goods and services from other businesses nationwide, amounting to around $5 billion last year alone. In addition, banks made a further contribution of $1.98 billion in tax.”
He added, “The strength of our banks also means they have been able to access funding at good rates, and the benefits of this have been passed onto New Zealanders.”
Code Committee for Financial Advisers
The New Zealand Bankers’ Association (NZBA) warns against being scammed by online romancers who might be more interested in your bank account than your stellar personality. What starts out as a budding online romance can quickly turn into devastating heartbreak once you’ve handed over your personal information or life savings, only to discover your soul mate was actually a stock image and has since vanished into cyberspace – leaving you to wallow in your Sam Smith and Adele playlist.
“We live in an increasingly online world, which means people become very comfortable building online relationships. All too often we hear of people being baited by catphish and duped into giving personal information or money to an online love who turns out to be a fraudster. There is always the possibility of being targeted by an online scam, and there are steps people can take to help protect themselves,” said Antony Buick–Constable, acting chief executive of the New Zealand Bankers’ Association.
‘Catphishing’ occurs when a fake profile is created online through emails, dating sites or social media to lure someone into a romantic relationship. Scammers are sophisticated and often invest a lot of time to create emails or extensive online social circles to make themselves look legitimate. They can spend months grooming their victims to gain their trust and make them feel like they’re “The One”. They continue to lavish attention until their victims are comfortable sharing personal information or handing over money to help with a fictional financial problem.
Once a scammer has you hooked they’ll appeal to your heart for your cash. Often they reel people in with a convincing personal crisis story – they’re stranded in the Congo after being robbed and they need cash for an airfare; their sick mother needs an emergency operation; or they’re actually quite wealthy, but can’t access their money right now and need a short term loan. Shortly thereafter victims discover their Romeo or Juliet isn’t quite who they thought they were as they are left bewildered with empty pockets and an empty heart.
“We all need to be cautious if ever approached for money or personal details online. It is important to remain vigilant in protecting our personal information, bank accounts and ultimately our money,” said Buick-Constable.
Top tips to help prevent you falling for a catphish:
- Don’t share your bank account login details, cards, PINS or passwords with anyone – no matter how much you love them! Your bank will never ask you for this information.
- Protect your personal information and only provide it to trusted people and organisations. This includes your date of birth, address, driver licence and passport details.
- Don’t reply to, click on any links, or open any files in spam emails. Don’t call any numbers in spam emails.
- If something doesn’t seem right, take time to make the appropriate checks. Always double check any email or website address against one you know to be legitimate.
- Don’t give or lend money to people you don’t know, and especially to people you have only met on the internet. Beware that there are online scammers out there.
- Contact your bank immediately if you think you are a victim of a banking scam or if you think your bank account has become compromised in any way.
- If you are the genuine victim of banking fraud your bank will generally stand by you and reimburse any losses. That promise doesn’t override your responsibility to protect access to your online accounts.
To find out more about protecting yourself from online dating scams or to report a scam visit:
http://www.consumeraffairs.govt.nz/scams/scam-types/dating-and-romance-scams
For further information on scams visit: https://www.consumer.org.nz/articles/scams
The New Zealand Bankers’ Association (NZBA) is encouraging people of all ages to be vigilant in protecting their personal information and finances as part of New Zealand’s Safer Internet Day.
The event, coordinated by NetSafe, promotes the safe and positive use of the internet and digital technologies, especially among children and young people.
Ministry of Business, Innovation and Employment