“The best option presented to him would have been to target affordability regulations to riskier lending and lenders, as well as make changes to the penalties regime.”
Roger Beaumont, NZBA chief executive, said it would have been better to target affordability regulations to riskier lending and lenders, as well as make changes to the penalties regime.
Commerce and Consumer Affairs Minister David Clark took the wrong option presented to him in the review into the Credit Contracts and Consumer Finance Act released today.
“The Council of Financial Regulators report released today presented a range of better options than those chosen by the Minister,” says New Zealand Bankers’ Association chief executive Roger Beaumont.
“The Minister’s changes will make some differences to overall lending and lending processes but will need to be done right to result in better outcomes for consumers.
“The best option presented to him would have been to target affordability regulations to riskier lending and lenders, as well as make changes to the penalties regime. Targeting affordability requirements to support those most at risk would provide them with appropriate protections as well as freeing up lending for those who can afford it.
“The government has announced some positive changes today, including narrowing the expenses considered by lenders, relaxing some assumptions that lenders were required to make about credit cards and helping make debt consolidation more accessible if appropriate for borrowers.
“These are the second set of changes to the lending rules since they came into force in December. That’s had a huge and unsettling effect on many New Zealanders and their ability to access affordable credit when they need it. We also note that these changes will not take effect until at least March 2023.
“We look forward to working with the government through the detail of the latest changes to the CCCFA rules.”
ENDS
New Zealand Bankers’ Association chief executive Roger Beaumont said people could cancel a direct debit authority at any time through their banks and did not require the merchant’s permission to do so.
New Zealand Bankers’ Association chief executive Roger Beaumont said rising interest rates, albeit from historic lows, had a real impact on a borrower’s ability to afford repayments on a home loan. Another big factor was the consumer lending rule changes the Government brought in last December.
NZBA suggests this in its submission to the Ministry for the Environment on the Government’s Draft National Adaptation Plan (NAP). It also says the NAP could be more ambitious, and should include more detail to be more effective.
“We believe that by working with government and organisations like FinCap, we can find a way to both protect vulnerable consumers from unscrupulous lenders and ensure a less restricted flow of credit to those who can afford it.”
“Our banks are telling me that approximately 10% of loans that would’ve been approved prior to December 1 are now being declined because of these regulations.”
KB Kookmin Bank Auckland Branch today became a member of the New Zealand Bankers’ Association, bringing the total number of member banks to 18.
New Zealand Bankers’ Association chief executive Roger Beaumont says: “We are delighted to welcome Kookmin Bank to the Bankers’ Association. Joining NZBA shows the Korean bank’s commitment to New Zealand and our banking industry.”
KB Kookmin Bank Auckland Branch general manager Gung Hoe Gu says: “We are very proud to be a member of the New Zealand Bankers’ Association. We believe that we’ve made an important step in becoming fully integrated into the New Zealand banking system. We look forward to working together with other members to support our domestic banking community.
“Our core strengths are expertise, a broad customer base, wide distribution network and a strong brand, and we aim to deliver financial services that bring happiness and well-being to our customers and society.”
A subsidiary of Korea’s leading financial services provider KB Financial Group, KB Kookmin Bank Auckland Branch has been registered in New Zealand since 1997 and offers retail and corporate banking services to customers.
The New Zealand Bankers’ Association is the voice of the banking industry. It backs our banks to deliver for New Zealanders by shaping policy and telling the industry’s story. NZBA develops and communicates positions on non-competitive industry issues.
Other NZBA members are ANZ New Zealand, ASB Bank, Bank of China, Bank of New Zealand, China Construction Bank, Citi, The Co-operative Bank, Heartland Bank, Hongkong and Shanghai Banking Corporation, Industrial and Commercial Bank of China, JPMorgan, Kiwibank, MUFG Bank, Rabobank New Zealand, SBS Bank, TSB Bank, and Westpac New Zealand.
Full membership of the Association is open to any bank registered under the Reserve Bank of New Zealand Act 1989. Affiliate membership is available to organisations that work with or support banks in New Zealand.
ENDS
New Zealand Bankers’ Association chief executive Roger Beaumont said the current economic and regulatory environment certainly affected first-home buyers.