Loan shark regulators should open shops in at-risk areas to deter dodgy lending and give borrowers easier access to official help, says a banking leader. Bankers’ Association chief executive Kirk Hope said opening a shopfront would help regulators enforce the rules against predatory lenders in areas where they were concentrated.
Reserve Bank of New Zealand
The new chief executive of the New Zealand Bankers’ Association says banks need more policy detail and more justification from the Reserve Bank on its plans to implement new global capital adequacy requirements for local banks ahead of the timetable set by the international regulatory overseer.
With heightened awareness around recent card fraud, the New Zealand Bankers’ Association has issued a reminder to check bank statements regularly.
“We can all help in the fight against fraud by keeping an eye on our bank accounts. If you identify an unauthorised transaction, contact your bank immediately,” said New Zealand Bankers’ Association chief executive Kirk Hope.
“Our banks take customer security very seriously. Banks constantly monitor fraud trends and have systems in place to help stay ahead of the criminals,” said Hope.
As well as checking bank statements for unauthorised transactions, customers can help prevent card fraud by following these simple tips:
- 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.
In its statement the New Zealand Bankers’ Association (NZBA) quoted Hisco as saying a strong and resilient banking sector was crucial for New Zealand.
A strong and resilient banking sector will play a critical role in New Zealand’s ongoing economic recovery, said the new chairman of the New Zealand Bankers’ Association (NZBA), David Hisco.
Mr Hisco, CEO of ANZ National, has been elected chair of the NZBA for 2012/13. Westpac New Zealand chief executive Peter Clare is the deputy chair.
“It is a privilege to have the opportunity to represent New Zealand’s banking sector, which is one of the most secure and efficient in the world,” Mr Hisco said.
“The sector has arguably never been more important to New Zealand. In the post-crisis environment, having a strong and resilient banking system is critical for New Zealand’s ongoing economic recovery.
“I look forward to working with colleagues from across the industry to promote a banking sector that continues to invest in New Zealand, while supporting consumers, businesses and the country’s economic future.”
ANZ takes over the chair bank role from Bank of New Zealand. “I look forward to working with David Hisco, and am pleased to acknowledge the contribution of Andrew Thorburn who chaired the NZBA Council over the last year. Of particular note during that time was the banking industry’s response to those affected by the Canterbury earthquakes,” said NZBA chief executive Kirk Hope.
The election of a new chair coincides with Mr Hope recently taking on the role of NZBA chief executive.
The New Zealand Bankers’ Association has welcomed the government’s release today of a draft bill targeted at loan sharks and fringe lenders.
The draft bill, which will amend the Credit Contracts and Consumer Finance Act 2003, proposes introducing a duty for all lenders to practice responsible lending.
The Ministry of Consumer Affairs has acknowledged banks and some other lenders are already committed to responsible lending. “The banking industry supports responsible lending because of the benefits to consumers,” said New Zealand Bankers’ Association chief executive Kirk Hope.
“We are also pleased to see that the draft bill provides for classes of lenders to be treated differently under the Responsible Lending Code. This means loan sharks can be specifically targeted without imposing unnecessary costs for the most responsible lenders in the market.”
The Association is concerned that any law changes avoid unintended consequences and unnecessary costs. The success of the reforms will depend on robust enforcement.
“The best crafted law will have little effect if it is not properly enforced against irresponsible players in the market,” said Hope.
The New Zealand Bankers’ Association has welcomed changes to credit reporting in New Zealand that take effect from 1 April 2012.
The most fundamental change is that information held by credit reporting agencies will include up to 24 months of an individual’s repayment history. This includes both payments and defaults. Until now only defaults, or missed payments, have been recorded.
“This is great news for bank customers as it provides a more accurate and complete picture of their repayments history, and will allow banks to make faster and better credit decisions for customers,” said New Zealand Bankers’ Association chief executive Kirk Hope.
Comprehensive credit reporting includes both ‘positive’ and ‘negative’ repayments information. “Customers who have met all their credit obligations, for example credit card, phone and power bill payments, will be able to demonstrate this when applying for a loan. Previously they might have had no credit history to support their application. Their positive payment history will now form part of their story,” said Hope.
The benefits of comprehensive credit reporting will build over time as credit providers opt into the initiative, and individuals’ credit profiles develop over the next few years.
The changes to credit reporting were introduced by the Office of the Privacy Commissioner through an amendment to the Credit Reporting Privacy Code. More information is available here.
As police continue to investigate the fraudulent skimming of several Auckland ATMs, the New Zealand Bankers’ Association has released a list of simple tips to help foil bank card scammers.
Commerce Committee