Parliament is considering legislation that would allow the Inland Revenue Department to collect contact details, bank account numbers and transactions of Americans living in New Zealand to pass on to tax authorities in the US. New Zealand Bankers Association chief executive Kirk Hope said if the information is not supplied, the Americans would impose hefty penalties on any investment there.

“People should have a good look at their circumstances and talk to their bank so they can be properly prepared for interest rate hikes,” says Bankers’ Association spokesperson Kirk Hope.

Now is a good time to prepare for rising mortgage interest rates said the New Zealand Bankers’ Association in response to the Reserve Bank of New Zealand’s Official Cash Rate statement today.

While the OCR has been left unchanged at 2.5%, the Reserve Bank has recently projected the cash rate could rise by 2.25% over the next two years.

“Mortgagors have enjoyed historically low interest rates for over two years. The cycle is now turning with some interest rates starting to rise,” New Zealand Bankers’ Association chief executive Kirk Hope said.

The OCR will continue to be an important driver of interest rate changes, but there are other factors that influence the level of the rate change including the cost of funding from domestic deposits and the cost overseas wholesale funding.

“Now’s the time to assess your circumstances and get your finances in order so you can manage an increase in the cost of borrowing. This is especially important for first home-owners who have borrowed at very low rates.”

“Talk to your bank if you have any concerns. Banks are happy to provide information about products and services to suit individual needs.

“On the flipside, the projected rise in interest rates is good news for people with term deposits. People who rely on interest income from investments, especially retirees, haven’t done so well recently. They stand to benefit from rising deposit rates,” added Hope.

Ministry of Business, Innovation and Employment

“We’ve said all along that supply has always been the issue in parts of the housing market, not the availability of cheap credit,” said New Zealand Banker’s Association chief executive Kirk Hope.

The New Zealand Bankers’ Association has today welcomed the Reserve Bank’s move to exempt new residential construction loans from the loan-to-value (LVR) restrictions it introduced on 1 October.

“We’ve said all along that supply has always been the issue in parts of the housing market, not the availability of cheap credit,” said New Zealand Banker’s Association chief executive Kirk Hope.

“We agree that this move will help to support the supply of new housing and reduce pressure on demand in the New Zealand housing market. We support any moves to address the supply issue.

“The Reserve Bank’s response shows flexibility and an ability to respond to industry concerns. We applaud them for taking on board the feedback provided by banks and the construction industry.

“This move complements the government’s efforts to address the housing supply issue in Auckland,” Hope said.

As the festive season approaches the New Zealand Bankers’ Association has reminded people how to avoid fraud and scams over the holidays.

“Don’t let fraudsters spoil this special time of the year. Whether we’re shopping or away on holiday, it pays to take care,” said New Zealand Bankers’ Association chief executive Kirk Hope.

If you’re shopping for Christmas or taking advantage of the New Year sales, here are a few tips to bear in mind:

Card safety:

• Guard your card. Treat it like cash. Don’t leave it lying around. Make sure you know
  where your card is at all times.
• Protect your PIN. Never tell anyone your PINs or passwords – not even the Police, bank
  staff, friends or family.
• Cover up. When entering your PIN number at ATMs and EFTPOS terminals, shield the
  PIN pad with your other hand. Criminals may ‘skim’ your card details by attaching a
  device to the card reader, and then ‘shoulder surf’ or use hidden cameras to record your
  PIN.

When shopping and banking online:

• Logon to internet banking by typing in your bank’s full web address. Do not use links that
  appear to take you to your bank’s website.
• Check you have a secure connection, which is shown by a padlock symbol somewhere
  on the page, and that the website address starts with ‘https://’. The ‘s’ stands for ‘secure’.
• Avoid public computers and public Wi-Fi for internet banking, e.g. internet cafes, libraries
  or hotels.
• Protect your identity information and only provide it to trusted people and organisations.
  This includes your date of birth, address, driver’s licence number and passport details.
• Shop with trusted retailers. Before you provide personal information make sure they will
  protect that information.
• Keep your anti-virus and firewall software up to date.
  If you use your mobile phone for banking:
• Only download apps from trusted sources
• Keep device operating systems up to date, and update apps when prompted
• Use your phone’s password lock feature
• Shield your passwords from people around you
• Change your passwords periodically, and make sure they are not easily guessable
• If available, use anti-virus software
• Contact your bank immediately if you lose your phone.

“If you’re planning to travel overseas, it’s a good idea to tell your bank. That way,
transactions you make in another country won’t surprise your bank. It’s also important that
your bank has up-to-date contact details in case they need to get hold of you,” Hope said.
Hope also cautioned people to be aware of so-called “phishing” scams.
“Online scammers use a range of ways to trick people into handing over personal
information, usually by phone or email. Once they have that information, such as your
account number, log-in details, or password, they can access your identity and your money.”

How to avoid phishing scams:

• Don’t give out account details over the phone unless you made the call and you trust that
  the number you called is genuine.
• Don’t reply to, click on any links, or open any files in spam emails. Don’t call any
  numbers in spam emails.
• Never send your personal details or accounts or passwords in an email.
• Check your statements. Advise your bank immediately of any unauthorised transactions.
• If you suspect you’ve been taken in by a scam, contact your bank immediately.

“As well as protecting yourself from financial crime, you can also help keep others safe by
reporting anything you know about frauds and scams to the Police or anonymously through
Crimestoppers,” Hope added.
Crimestoppers is an independent charity that allows anyone to report crime anonymously by
phone or online. More information is available at http://www.crimestoppers-nz.org/.

“Banks lend responsibly,” Hope insisted. It’s not them which need new regulation.

Ministry of Business, Innovation and Employment

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The third reading of the Reserve Bank of New Zealand (Covered Bonds) Amendment Bill today has been welcomed by the New Zealand Bankers’ Association.

The Bill establishes a legislative framework for issuing covered bonds and enhances the Reserve Bank’s supervision of covered bond programmes.

“The new law brings us into line with other jurisdictions. This Bill clarifies matters for investors and means that New Zealand covered bond issues are no longer at a competitive disadvantage with other countries,” New Zealand Bankers’ Association chief executive Kirk Hope said.

“Covered bonds are a useful funding tool and provide benefits for both investors and the bond issuing banks.

“They extend our banks’ access to cheaper and more stable offshore funding. They also give investors the confidence to continue to provide essential funding to help facilitate our economic growth.

“In turn, consumers benefit from banks’ access to offshore funding to help meet their needs and aspirations,” Hope said.