The banks argue KiwiSaver means Kiwis win when they do.
Ministry of Business, Innovation and Employment
The association is welcoming a bill which would crack down on international and home-grown organised crime and says the bill will help maintain our reputation overseas.
“Our banks and New Zealand have little choice but to comply with Fatca,” Kirk Hope said.
Ministry of Business, Innovation and Employment
New Zealand is now ready to comply with US tax law that aims to reduce tax evasion by US persons who have financial accounts outside the United States said the New Zealand Bankers’ Association today.
The third reading of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Bill today, in conjunction with an intergovernmental agreement (IGA) signed last week between New Zealand and the United States, means that New Zealand financial institutions can comply with the US Foreign Account Tax Compliance Act (FATCA).
FATCA requires participating financial institutions around the world, including New Zealand banks, to provide relevant information about customers who are US persons and will be phased in from 1 July 2014.
To help implement FATCA New Zealand needed to enter into an agreement with the United States and to amend the Tax Administration Act 1994. The amendment passed today requires all financial institutions to collect information to determine whether a customer is a US person and to disclose required information to Inland Revenue. Under the agreement signed last week, Inland Revenue collates this information and passes it on to the US Internal Revenue Service.
“Our banks and New Zealand have little choice but to comply with FATCA,” said New Zealand Bankers’ Association chief executive Kirk Hope.
“Not complying could see banks penalised by a 30% withholding tax on principal and income from investments in the United States. US capital markets provide much of the funding most banks need to lend to New Zealand households and businesses. So there would be a huge impact on our economy if we didn’t comply.
“Complying with FATCA also allows our banks to continue to provide services to US citizens and residents who have New Zealand bank accounts.
Kirk Hope is the chief executive of the NZ Bankers’ Association, the lobby group for the industry that employs over 25,000 people.
NZBA chief executive Kirk Hope said he was pleased more than three-quarters of customers were happy.
A public opinion survey has found a high level satisfaction among bank customers, the New Zealand Bankers’ Association said today. The survey also measured perceptions of the banking sector’s strength and acceptable profit levels.
Seventy-seven per cent of respondents were satisfied or very satisfied with their main bank, with only nine per cent dissatisfied or very dissatisfied.
“We’re pleased to see that more than three quarters of all bank customers are happy with their bank,” said New Zealand Bankers’ Association chief executive Kirk Hope.
“The results reflect how competitive our banks are. They work hard to attract and keep their customers by providing excellent service.”
The survey also found that 61 per cent of respondents agreed that the strength of New Zealand banks meant that New Zealand got through the global financial crisis with less damage than other countries.
The public perceptions line up with local and international analysis of our banks’ performance. The World Economic Forum’s Global Competitiveness Report 2013-2014 rated New Zealand banks the second most sound in the world after Canada. An International Monetary Fund report in March this year found New Zealand banks to be well capitalised, accessing more stable forms of funding, and experiencing low and declining bad loans. These findings were reflected in the Reserve Bank’s recent Financial Stability Report.
“We have a strong, stable and well-regulated banking sector which supports our economic growth,” Hope said.
The survey also posed a question about what level of bank profits was acceptable. Of those with an opinion, the median range cited as an acceptable return on equity was 15-19 per cent.
“That’s higher than our banks’ actual average return on equity, which was 14.21% in the 2013 financial year,” said Hope.
Banks will never ask for your pins or passwords, and legitimate retailers shouldn’t ask you for pins or passwords either. It’s pretty much a sure sign someone’s trying to rip you off.