“Discussions with some banks on a potential Business Growth Fund are at a very early stage. No agreements or commitments to participate have yet been reached.”

‘Not good enough’ is the summation of the Bankers’ Association when it comes to the Government’s tweaks on the CCCFA. Chief executive Roger Beaumont joined Mike Hosking.

External Reporting Board (more…)

“The Government’s tweaks to the CCCFA lending rules announced in March are just a band aid. We don’t think the tweaks will make a big difference for most borrowers. That’s because most of the existing requirements remain in place, meaning customers will still have to provide detailed information about their spending, resulting in a more painstaking process and more loan applications being declined than before the December rule change.”

Ministry of Business, Innovation and Employment (more…)

The New Zealand Bankers Association said 44 per cent of people with home loans were ahead and paying more than the minimum in repayments. About 1.2 million Kiwis currently had a mortgage.

“The new rules have a one-size-fits-all approach for all lenders and all loan types and values, which has seriously impacted people applying for home loans. The new rules require banks to collect and verify much more information from customers, and the prescriptive approach means banks don’t have the same discretion or flexibility they used to.”

Reserve Bank of New Zealand (more…)

New Zealand Bankers’ Association chief executive Roger Beaumont said factors outside banks’ control such as the rising cost of living and the ongoing economic impact of Covid-19 had negatively affected consumer sentiment generally, and that in turn impacted how people feel about banks.

“Banks work closely with customers through a range of options before considering a mortgagee sale. Some people may choose to sell the property themselves before it gets to a mortgagee sale.”