Labour MP David Shearer and Kirk Hope from the Bankers’ Association go head-to-head on whether Kiwis are getting a fair deal from banks.
Financial Markets Authority
Hope pointed to NZ$6.6 billion contributed to the New Zealand economy in 2014 in wages to 25,000 employees and other spending, along with NZ$1.8 billion paid in taxes.
“It’s a pretty competitive market; that’s one reason banks may choose not to pass on any additional capital costs to their customers,” he said. “They may of course choose to do that.”
Hope said all of the products that were available in the past were still available. Asked how long cheques would still be around Hope said that was directly related to customer demand. “If there is demand for it they will still be available.”
The New Zealand Bankers’ Association today welcomed the government’s response to the Productivity Commission’s recommendations to improve regulation in New Zealand.
“We support any moves to improve the quality of regulation in New Zealand and it’s good to see the government acknowledging that more needs to be done in this area,” said New Zealand Bankers’ Association chief executive Kirk Hope.
“We’d particularly welcome regulators working more collaboratively with their stakeholders and placing a greater emphasis on monitoring and reviewing regulatory regimes.
“Good regulation serves the needs of consumers, industry and regulators. It’s in everyone’s interests that we get the balance right between workable regulation and economic growth.
“Quality regulation is developed in a coordinated and consultative process, it’s robust, well-targeted and enforced, and it’s fit for New Zealand conditions.
“We support regulation that is developed in a transparent and coordinated way. Too often regulators and government agencies work in isolation, without regard to the burden placed on industry systems and resources to comply with regulatory requirements. Flexibility on implementation timeframes is essential to ensure practical, effective regulatory outcomes.
“All regulation should achieve a clearly defined purpose without imposing unnecessary costs and unintended consequences on businesses and consumers. More than lip service is needed to make sure we get regulation right. In a country and economy the size of New Zealand we can’t afford to get it wrong,” Hope said.
Reserve Bank of New Zealand
“Some people pay no interest on their credit cards, or they have a low interest credit card. Often they go for the higher interest product because of the loyalty offerings and because they pay the card in full before the interest free period ends.”
Ministry of Business, Innovation and Employment
Bankers’ Association chief executive Kirk Hope said retail banks were honouring pre-approvals to property investors made prior to 16 June, but all new applications were being approved on a case by case basis.