The chief executive of lobby group the New Zealand Bankers’ Association, Kirk Hope, said the group supported the Government’s changes.

MasterCard New Zealand has been unveiled as the first affiliate member of bank lobby group the New Zealand Bankers’ Association.

NZ Bankers Association chief executive Kirk Hope said: “The Canstar report demonstrates the high level of competition … and the importance of consumers doing their research, and talking to their bank to ensure they get the best possible deal.”

MasterCard New Zealand today became the New Zealand Bankers’ Association’s first affiliate member.

“We are delighted to welcome MasterCard as our first affiliate member,” said New Zealand Bankers’ Association Chief Executive Kirk Hope.

“Until recently our membership was limited to banks registered under the Reserve Bank of New Zealand Act 1989. The new affiliate membership category announced today allows us to formalise relationships we have with a range of organisations involved with banking in New Zealand.

“It also means those organisations can benefit from our reach and contacts across the banking sector.”

MasterCard’s New Zealand Country Manager Peter Chisnall said, “As part of MasterCard’s commitment to New Zealand, we are proud to be the first affiliate member of the New Zealand Bankers’ Association.

“MasterCard’s membership will formalise our long-standing relationship with the Association and help continue to promote policy outcomes relating to the continued evolution of the payments industry.”

“We support the Code because it will help target unscrupulous lenders and provide greater protection for vulnerable people,” said NZBA chief executive Kirk Hope.

The New Zealand Bankers’ Association today welcomed the government’s release of the Responsible Lending Code.

The Code provides guidance on how responsible lenders should behave and supports consumer credit law reforms last year that aimed to crack down on loan sharks.

“We support the Code because it will help target unscrupulous lenders and provide greater protection for vulnerable people,” said New Zealand Bankers’ Association chief executive Kirk Hope.

“Along with other responsible lenders and consumer groups, we have engaged with government on the Code’s development to help find a balance between protecting vulnerable consumers and making sure responsible lenders do not incur substantial additional compliance costs.

“As ever, proper enforcement will play a crucial role in the Code’s success. Regulators will need to be vigilant to ensure the Code, and the law behind it, meets its stated aims of cracking down on loan sharks and other unscrupulous lenders.

“We congratulate Commerce and Consumer Affairs Minister Paul Goldsmith on finalising the Code,” Hope said.

The fall in foreclosures reflected generally positive trends for Kiwi consumers and prospective homeowners, said Kirk Hope, New Zealand Bankers’ Association chief executive.

Bank of China today became the first Chinese bank to join the New Zealand Bankers’ Association. “The arrival of Bank of China further enhances competition and diversity in our banking sector,” association chief executive Kirk Hope said.

Bank of China (New Zealand) today joined the New Zealand Bankers’ Association, bringing the total number of the association’s member banks to 15.

“We are pleased to welcome our first Chinese member bank. The arrival of Bank of China further enhances competition and diversity in our banking sector,” said New Zealand Bankers’ Association Chief Executive Kirk Hope.

Bank of China (New Zealand) Executive Director David Wang said “Bank of China (New Zealand) Limited is proud to be the first Chinese bank to join the New Zealand Bankers’ Association. We believe NZBA plays a very important role in the domestic banking industry and we are excited to be NZBA’s newest member.

“We are committed to New Zealand and making a contribution to the domestic banking industry, as well as being at the forefront of RMB product innovation and facilitating the economic and trade opportunities between China and New Zealand.”

Bank of China’s focus in New Zealand is on international trade, with its core business being corporate banking and financial markets services. Bank of China became a New Zealand registered bank in November 2014.

KPMG’s Financial Institutions Performance Survey for the 2014 financial year has found that New Zealand’s strong banking sector is fueling the country’s economic growth.

“The strength of our banks supports the New Zealand economy by funding the needs of households and businesses. This is particularly important in the current context of economic uncertainty in other parts of the world,” said New Zealand Bankers’ Association chief executive Kirk Hope.

“Bank profits are a key measure of the banking industry’s strength. As well as supporting economic growth, profits allow banks to continue to invest heavily in New Zealand. In 2014 banks made a direct contribution of $6.6 billion to the New Zealand economy. They spent $4.8 billion running their businesses here, which includes employing over 25,000 people and paying a range of local businesses for goods and services. Banks also paid $1.8 billion in tax.”

Banks’ average return on equity in 2014 was 16.13 per cent. “Independent research shows that bank returns on equity fall firmly in the middle of the pack compared to major businesses listed on the New Zealand Stock Exchange.”

“Bank profits are largely a result of good management. Household credit growth is under five per cent, which is relatively low. Banks have had to carefully manage their operating costs. Average operating expenses as a proportion of operating income are down from 42.40 per cent in 2013 to 39.25 per cent in 2014. The reduction in bad debts is also an important part of the profits story, and reflects both the buoyant state of the New Zealand economy and banks’ responsible lending practices.”

“The strength of our banks means they’re able to access funding at good rates. Competition among our banks remains intense. All of this is great news for New Zealand consumers,” Hope added.