Kirk Hope is wary of Bitcoin volatility.

The New Zealand Bankers’ Association today encouraged people to be wary of online banking scams as part of Fraud Awareness Week 2014.

“Online scammers are constantly thinking up new ways to trick people into handing over personal information,” said New Zealand Bankers’ Association chief executive Kirk Hope.

“Never give anyone your PIN or internet banking username or password. Your bank will never ask you for this confidential information. Anyone who asks for this, even if they say they’re from your bank or a retailer you know, will in all likelihood be trying to scam you.

“Once scammers have that information, such as your account number, log-in details, or password, they can access your identity and your money.”

“If it doesn’t seem right, take care and double check it first before handing over personal information.”

“Everyone has a role to play in fighting fraud by being vigilant and reporting scams.

“Reporting scams raises public awareness and helps stop scammers in their tracks. Contact your bank as soon as possible if you think you’ve been taken in by a scam,” Hope said.

Scams can also be reported here.

Online scams are the focus of this year’s Fraud Awareness Week campaign, which is co-ordinated by the Ministry of Business, Innovation and Employment. More information about Fraud Awareness Week is available here.

Anyone who asks for your Pin number, even if they say they’re from your bank or a retailer you know, will in all likelihood be trying to scam you.

The New Zealand Bankers’ Association has welcomed the third reading of the Credit Contracts and Financial Services Law Reform Bill in Parliament last night.

The law change aims to crack down on loan sharks and requires lenders to act with skill, care and diligence in all dealings with a borrower throughout the life of a consumer credit contract. It will also introduce a Responsible Lending Code to provide guidance on how a responsible lender should behave.

“Banks are responsible lenders. We strongly support measures that target unscrupulous lenders and provide greater protection for vulnerable people. We’re keen to see all lenders held to the same standards we already observe,” said New Zealand Bankers’ Association chief executive Kirk Hope.

“We look forward to working with government to help get the Responsible Lending Code right. It needs to strike a balance between protecting vulnerable consumers and ensuring legitimate and well-regulated lenders do not incur substantial additional compliance costs.

“The law change and the new Code present an opportunity to get this balance right.

“We congratulate Consumer Affairs Minister Craig Foss on getting the Bill through. It represents the biggest change in consumer credit law in more than a decade,” Hope said.

Karen Scott-Howman of the Bankers’ Association says people do authorise payments in error, but what happned here is rare.

New Zealand banks are moving to implement their obligations under the United States Foreign Account Tax Compliance Act (FATCA).

The US law aims to reduce tax evasion by US persons using financial accounts outside the United States of America. It does so by requiring participating financial institutions around the world, including New Zealand banks, to provide relevant information about customers who are US persons.

“FATCA does not introduce any new tax obligations for US citizens and residents living in New Zealand. They will still have to file an annual US tax return,” said New Zealand Bankers’ Association deputy chief executive Karen Scott-Howman.

FATCA will be phased in from 1 July 2014. The information reporting requirements will apply to relatively few people living in New Zealand. They include US citizens, US permanent residents and green card holders, and people born outside the United States who have a US parent.

“Anyone unsure about their US tax status should seek independent tax or legal advice,” Scott-Howman said.

If financial institutions do not comply with FATCA they may be penalised by a 30% withholding tax on principle 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. If those funding sources were no longer available due to non-compliance there would be a significant impact on the New Zealand economy.

“Complying with FATCA allows our banks to continue to provide services to US citizens and residents who have New Zealand bank accounts,” said Scott-Howman.

The government’s sound economic management has begun to pay dividends said the New Zealand Bankers’ Association today in response to Budget 2014.

“The Budget shows that the New Zealand economy is on the right track with a return to a small surplus in 2014/15 and then with surpluses forecast to increase moderately in future years,” said New Zealand Bankers’ Association chief executive Kirk Hope.

“There’s no doubt that after six years of deficits the Crown’s books are improving, and this reflects the responsible fiscal management of the government, and the strength of the New Zealand economy. Overall, this is a balanced and sensible Budget.

“That said, it’s important that we take a cautious view on the state of the economy. Budget 2014 shows that the forecast surpluses in out-years remain modest at best and could easily be put at risk.

“For that reason it’s pleasing to see the government taking a prudent approach to future expenditure and only allowing for moderate increases in government spending. This will also ensure that inflationary pressures are kept to a minimum, and that interest rates are not materially affected.

“This restraint is welcomed and it’s vital that we resist the temptation to move away from careful, cautious government spending and put undue pressure on interest rates.

“We are also pleased to see Budget 2014 projecting net Crown debt dropping to 20% of GDP in 2019/20 and with it the government committing to resuming full contributions to the NZ Super Fund.”

The Budget also contained a number of tax changes including abolishing cheque duty and adjusting tax deductibility for research and development expenditure.

The Reserve Bank of New Zealand’s Financial Stability Report released today has found that the financial system remains sound and is well placed to support economic expansion.

“The New Zealand banking industry is in good shape, remains strong, and is well capitalised and regulated,” said New Zealand Bankers’ Association chief executive Kirk Hope.

“Recently reported bank returns are a sign of both the industry’s strength and our buoyant economy, especially compared to other parts of the world. That’s good for us at home and our reputation overseas.”

“Maintaining a successful banking sector is important because it supports economic growth by helping fund the needs of businesses and households and providing a safe place for us to save and invest.

“On housing affordability, the Reserve Bank acknowledges that credit growth has remained modest. Bank lending isn’t driving house prices. It’s the lack of housing supply in some parts of the country that’s the problem. The government’s steps to address supply issues will help here.”

The Reserve Bank also said it would review its bank and non-bank regulations to help improve their efficiency, consistency and clarity.

“We welcome this move. We need quality regulation that’s developed in a coordinated and consultative way, is robust, well-targeted and enforced, and is fit for New Zealand conditions.

“Banks make a significant contribution to New Zealand through direct investment and facilitating economic growth. Getting regulation right, and striking a balance between new rules and the need to support economic growth, is critical,” Hope said.

Productivity Commission

KPMG’s Financial Institutions Performance Survey analysis for the quarter to December 2013 released today has found that New Zealand’s economic development and the banking industry’s strength go hand-in-hand.

“Our strong and stable banking system provides a great platform for economic growth. That growth is possible because banks are providing funding to businesses across a range of sectors,” said New Zealand Bankers’ Association chief executive Kirk Hope

The strength of our banking industry has been recognised internationally. The World Economic Forum’s Global Competitiveness Report 2013-2014 rated New Zealand banks as the second most sound in the world after Canada. This is important because it helps our banks borrow money from overseas at good rates which can be passed on to New Zealand businesses and households.

The KPMG report also found the banks continued to face regulatory challenges.

“We need good regulation that’s developed in a coordinated and consultative way, is robust, well-targeted and enforced, and is fit for New Zealand conditions.

“We support quality regulation that is well-targeted and enforced. All regulation should achieve a clearly defined purpose without imposing unnecessary costs and unintended consequences on businesses and consumers.

“Banks make a significant contribution to New Zealand through direct investment and facilitating economic growth. Getting regulation right, and striking a balance between new rules and the need to support economic growth, is critical,” Hope said.