“Banks will engage constructively with the Reserve Bank in the consultation process to help make the levy appropriate, effective, and well targeted,” Beaumont said.

“Banks will engage constructively with the Reserve Bank in the consultation process to help make the levy appropriate, effective, and well targeted,” he said.

In the meantime, commenting on the levy, New Zealand Banking Association chief executive Roger Beaumont said banks understood the need for appropriate funding for regulators.

Department of Internal Affairs (more…)

Reserve Bank of New Zealand – Te Pūtea Matua (more…)

Reserve Bank of New Zealand – Te Pūtea Matua (more…)

Beaumont says banks make a net contribution to the New Zealand economy, once you take into account the billions they collectively pay in tax and running their businesses here, and that they employ around 30,000 New Zealanders.

Beaumont said: “Kent is often on about bank profits and never talks about the huge direct investment our banks make in New Zealand, which amounts to over $60 billion, to meet the capital requirements that help fund the financial needs of our businesses and households. The return on that investment averages around 11.5% per annum, which is in the middle of the pack compared to other major New Zealand companies. He also ignores the fact that banks make a net contribution to the New Zealand economy once you take into account the billions they collectively pay in tax and running their businesses here, and that they employ around 30,000 New Zealanders.”

NZ Banking Association chief executive Roger Beaumont said the issues canvassed in the bill could be addressed by the select committee’s banking inquiry into banking competition and ongoing scrutiny. “It’s important to note that the bill … ignored the fact that banks make credit decisions based on commercial reasons.”

Justice Committee (more…)