The New Zealand Bankers’ Association is encouraging people to get their money fighting fit during Money Week which runs from 13 to 19 October.
“Financial fitness is a lot like physical fitness. We know it’s good for us and can really improve our lives and how we feel, but sometimes it’s hard to take the first step. Money Week is all about helping us to take the plunge to manage our money better,” said New Zealand Bankers’ Association deputy chief executive Karen Scott-Howman.
“Banks across New Zealand are right behind Money Week because people who are financially well-informed make better money decisions. That’s good for banks and good for their customers.”
Banks are joining other organisations in supporting Money Week though a range of initiatives and events in communities and schools.
“So whether you’re looking for tips on day-to-day money management and budgeting, or savings and investment advice, there’s something for everyone.”
“Money Week is also a good time to book in for a financial fitness check-up. Your bank can offer you personalised advice about how to manage your money better. They’re more than happy to talk to you about your individual circumstances and how you can get to where you want to be,” Scott-Howman said.
Money Week is coordinated by the Commission for Financial Literacy and Retirement Income. More information is available at www.moneyweek.org.nz.
Bankers’ Association chief executive Kirk Hope said banks always recommended people protected themselves from online fraud by keeping their operating systems and security software up-to-date.
Bankers’ Association chief executive Kirk Hope said the banking sector understood that up to 30 per cent of sum-insured homes might be under-insured.
Financial Markets Authority
Banks have streamlined the lending process for apartment owners struggling to get loans for leaky building repairs.
Financial Markets Authority
Inland Revenue Department
Banks are managing their businesses well and that helps support New Zealand’s economic growth said the New Zealand Bankers’ Association in response to KPMG’s Financial Institutions Performance Survey for the quarter to June 2014.
The report showed a normalised increase in bank profits of 6.2 per cent for the quarter.
“Profitability is an important part of the banking sector’s strength. These returns allow banks to continue to invest heavily in New Zealand,” said New Zealand Bankers’ Association chief executive Kirk Hope.
“Last year banks made a direct contribution to the New Zealand economy of $4.5 billion by running their businesses here and employing over 25,000 people. On top of this banks paid $1.5 billion in tax.
“Bank profits are a result of good management. Banks are keeping a close eye on their operating costs. Average operating expenses as a proportion of operating income are down from 50.79 per cent in September 2012 to 41.35 per cent in June 2014. That’s crucial in an environment of low credit growth, which is running around 5 per cent.
“Bad loans remain very low which is another factor in maintaining profitability. This reflects the responsible lending practices of our banks.”
The report also found that competition remains intense among New Zealand banks, especially in the housing lending sector. Competition is also driven by relatively low barriers to new banks entering the market.
“The KPMG report echoes the findings of the World Economic Forum, which has rated our banks as the second most sound in the world after Canada, two years running,” Hope added.
“We think the later the date the better. This will give the banking industry more time to adapt and draw on experience gained through FATCA,” says Hope.
Ministry of Business, Innovation and Employment