The New Zealand Bankers’ Association said today that PwC’s Banking Perspectives analysis of the major banks’ results for the first half of their 2012 financial years showed New Zealand banks were continuing to perform well in the face of ongoing global uncertainty.
“Our banking industry is in good shape. It’s well capitalised and regulated. Our strong and stable banks provide a great platform for the economic growth we need,” said New Zealand Bankers’ Association chief executive Kirk Hope.
“The increase in lending to the commercial sector is a sign that businesses are looking to invest more, which is good for the economy.
“There’s been a significant improvement in asset quality. Bad debt expenses are down 27%. This demonstrates that banks are working hard with customers who themselves in financial difficulty. It’s in both the customers’ and banks’ interests to deal with any issues as soon as possible.
“While the average net interest margin increased slightly to 2.4% in the first half of 2012, our banks continue to be very competitive. This is good news for customers. Interest rates are at historic lows and will likely stay down longer than expected. Banks are working hard to manage their funding costs.”
Hope added it was important to acknowledge the industry’s significant investment in New Zealand. “Not only do banks support our economy though lending and investment services, and providing a world-class payments system, they also make a big direct contribution. In 2011 the banking industry spent $4.46 billion in New Zealand and paid $1.3 billion in tax. Banks also provide employment for over 25,000 people in New Zealand.”
The New Zealand Bankers’ Association is urging the public to be on guard against an email scam. Scammers are sending emails out which appear to come from a New Zealand Bankers’ Association email address: nzba@nzba.org.nz.
The scam emails include a subject line of “We are necessitating a verification process on all account(s)”.
Anyone receiving this email, or anything similar, should delete it immediately. Do not click on any links within the email, and do not disclose any personal information.
“This scam was relatively easy to spot because the Bankers’ Association is not a bank, and would never ask people about their bank accounts.
“People are reminded to safeguard information relating to their bank accounts, and never to disclose their PIN numbers or account passwords to anyone. I would like to emphasise that the New Zealand Bankers’ Association, and its member banks, will never ask a customer to disclose their PIN number or account password,” said New Zealand Bankers’ chief executive Kirk Hope.
This kind of scam is known as “phishing”. Phishing scams try to get your bank account numbers, passwords and credit card numbers.
Get more information about phishing scams
A reduction in compliance costs could be on the way for small and medium sized companies if the new financial reporting bill passes later this year. New Zealand Bankers’ Association CEO Kirk Hope says the savings could be significant.
The New Zealand Bankers’ Association welcomes the recent introduction of the Financial Reporting Bill by Commerce Minister Craig Foss.
The Bill seeks to remove or reduce unnecessary and excessive reporting requirements. This will significantly cut costs for small and medium-sized companies. It will also further reduce barriers to doing business in New Zealand by better aligning our reporting requirements with those in other countries.
“We commend the government’s decision to streamline financial reporting requirements. This will support New Zealand business growth and development, which is vital to improving our economic performance,” said New Zealand Bankers’ Association chief executive Kirk Hope.
Small and medium-sized companies will no longer be required to prepare general purpose financial reports. Instead they will be able to file reports which are more appropriate to their businesses. Guidelines for these special purpose reports are being developed by the New Zealand Institute of Chartered Accountants (NZICA). The New Zealand Bankers’ Association is keen to work with NZICA to ensure the cost burden for small and medium-sized companies is minimised and information is consistent and standard
Financial Markets Authority
It may never rival the popularity of the Da Vinci Code, but there is good reason why everyday banking customers will want to read the Code of Banking Practice
The New Zealand Bankers’ Association issued a statement applauding Hunt’s prosecution. NZBA chief executive Kirk Hope said at last year’s Financial Summit the banking industry had agreed with regulators and consumer groups that robust enforcement of existing consumer protection law was crucial to cracking down on rogue lenders who prey on vulnerable people.
n defence of lenders, Hope said it needs to be recognised by those critical of finance companies that the circumstances of borrowers (particularly those using credit facilities) can change from the time of the loan.
The New Zealand Bankers’ Association has encouraged bank customers to have a look at the latest Code of Banking Practice, which comes into force on 1 July. Now in its fifth edition, the Code provides a useful guide for customers and their relationship with their banks.
“The Code includes a whole lot of useful information about what banks will do for their customers. It covers things like getting credit, internet banking, and how you can protect your PINs and passwords.
“If you have a relationship with a bank, you need to know about the Code,” said New Zealand Bankers’ Association chief executive Kirk Hope.
The Code is reviewed every three years. “On the whole we found the Code is working well. We’re at the point where it gets updated to reflect good industry practice and to take into account new technology, rather than needing a major overhaul,” said Hope.
There are four main changes to the fifth edition:
- Mobile phone banking: The internet banking chapter has been updated to include the use of smart phones and mobile banking apps.
- Dispute resolution process: The dispute resolution process for customers has been clarified and reflects the fact there is now a range of dispute resolution schemes available to financial service providers.
- Accessibility: The Code is now available on all NZBA member bank websites as well as on the NZBA website. Print versions of the Code will continue to be available from bank branches.
- Wholesale customers: The Code has always focused on banks’ relationships with their retail customers. The new Code reflects this by expressly excluding wholesale customers from its target audience.
“The revised Code has been brought up to date to include innovations in banking services and is now clearly aimed at the retail customers it was always meant to help.
“It is one of the most comprehensive pieces of industry self-regulation operating in New Zealand. This industry initiative sets out at the very least what banks will do for their customers. It also complements more specific terms and conditions applying to particular products offered by banks,” Hope said.
Commerce Committee