The Reserve Bank says it will review its Open Bank Resolution bank failure tool once the planned depositor compensation scheme is rolled out amid suggestions from the New Zealand Bankers’ Association that the OBR will remain the Reserve Bank’s primary resolution and depositor protection tool for large banks.
Reserve Bank of New Zealand
New Zealand Bankers’ Association chief executive Roger Beaumont says in the current climate it is not surprising to see mortgagee sales starting to rise. But mortgagee sales are a “last resort”, he says. They are also rare, and represent a tiny fraction of the around 1.25 million home loans there are in New Zealand.
The NZ Bankers’ Association submitted that the crown research institute model made it extremely difficult for businesses to access and use this data.
NZ Bankers’ Association chief executive Roger Beaumont said it was important for customers to speak to their bank as early as possible if they were “doing it tough”.
“If you’re considering borrowing from your bank, it’s always worth having a chat with them to find out what they’ll be looking for and what you can do to help get your application over the line.
Finance and Expenditure Committee
In response to the Reserve Bank governor’s recent comments about banks supporting households and businesses in the face of an historic rise in the official cash rate, New Zealand Bankers’ Association chief executive Roger Beaumont says:
“Our banks are ready to support customers who are doing it tough because of the rising cost of living and other economic headwinds. If you’re experiencing financial difficulty, it’s important to speak to your bank as soon as possible. The sooner you talk to your bank, the more likely they’ll be able to help.
“Our banks are well-placed to support New Zealand households, businesses, and the economy through the difficult times ahead. They are well capitalised and are regularly stress-tested by the Reserve Bank.
“Depending on your circumstances there are a number of ways in which banks can help people facing financial difficulty. Your bank can work with you to develop a plan to suit your needs. Our banks are here to help.”
ENDS
He said these cases were often very sensitive and complicated by the bank’s customer obligations to both domestic partners who may have joint accounts, home loans or credit cards. “Joint products usually need the consent of both customers to make any changes. Issues can arise when one party refuses consent.”
“Banks play a part in helping to identify instances of economic harm. They train staff to recognise signs of potential economic harm while being sensitive to customers’ situations and wishes.”