Reserve Bank of New Zealand – Te Pūtea Matua (more…)
The banking association took issue with the monopoly, saying the merged armoured van cash company had already started exercising “behaviour that would not be expected in a workably competitive market”.
The NZBA spokesperson said the association’s members had differing views on the merits of each of the three models. “We think the industry is already delivering better access to transaction accounts.”
“If we continue as we are now, the likely result will be reduced reliability, slower response times, and a general decline in the overall quality of cash-in-transit services – posing a real risk to the future viability and reliability of this service.
Roger Beaumont, chief executive of the Banking Association, told the committee: “This bill is based on a serious misunderstanding. It ignores the fact that banks make credit decisions based on commercial reasons, not on the basis of murky moralising.”
Ministry of Business, Innovation and Employment (more…)
NZ Banking Association chief executive Roger Beaumont said RBNZ’s proposal was a step in what he saw as the right direction, likely with differing impacts on each of the various sector players.
“We’ve tried to keep the calculator as user-friendly as possible. We hope uptake is strong and that users find it helpful.”
“We are delighted to launch the calculator in association with Interest,” Beaumont said in a media release. “Our banks compete strongly in the home loan market, and we support providing borrowers with clear information to help make one of the most important financial decisions of their lives.”
The banking industry today launched an online calculator that allows consumers to compare up to three home loan offers. This initiative responds to a recommendation in the Commerce Commission’s market study into personal banking services.
The home loan calculator is hosted by Interest.co.nz and is available here: https://www.interest.co.nz/calculators/home-loan-comparison-calculator
The calculator will allow prospective borrowers to compare costs and incentives included in each offer to provide an estimated effective interest rate per annum. The effective interest rate is what the borrower pays after taking into account any cashback and other benefits offered by the lender, along with loan fees and any other costs.
New Zealand Banking Association chief executive Roger Beaumont says: “We are delighted to launch the calculator in association with Interest. Our banks compete strongly in the home loan market, and we support providing borrowers with clear information to help make one of the most important financial decisions of their lives.
“We’ve tried to keep the calculator as user-friendly as possible. We hope uptake is strong and that users find it helpful.”
The calculator’s development and ongoing maintenance is funded by members of the New Zealand Banking Association.
ENDS
Note
The home loan calculator responds to recommendation 10 of the Commerce Commission’s market study into personal banking services:
10. Home loan providers should present offers in a readily comparable manner, accounting specifically for the effective value of cash contributions. Industry should create a standard means of comparing home loan offers across all providers such as through a single effective interest rate that incorporates the effect of cash contributions over the clawback period to help consumers compare the cost of different loan offers.