Roger Beaumont, chief executive of the New Zealand Bankers’ Association, which speaks for member banks including ANZ, ASB, BNZ, Kiwibank, and Westpac, said: “The sooner you talk to your bank, the better placed they are to help you.”
“I think it was a really well considered and pragmatic decision by the Reserve Bank which will mean that banks have greater capacity to support their customers, who are financially impacted by Covid-19, and work through those issues.”
New Zealand Bankers’ Association chief executive Roger Beaumont said customers financially affected by a coronavirus, particularly small to medium-sized businesses, were encouraged to contact their bank.
Help could include providing access to short-term funding; reducing or suspending principal payments on loans and temporarily moving to interest-only repayments; help with restructuring business loans; and consolidating loans, the New Zealand Bankers’ Association said.
Bankers’ Association chief executive Roger Beaumont said customers financially affected by the virus, particularly small- to medium-sized businesses, should contact their bank.
“Each bank will have their own credit policies and approach to providing assistance. It’s important for affected customers to talk to their bank as soon as possible. That gives banks the best chance of offering assistance.”
RBNZ and bank lobby group NZBA have issued a joint statement in response to mounting concerns about the health and economic impacts of the global coronavirus outbreak.
New Zealand banks are ready to respond to the impacts of coronavirus, the Reserve Bank of New Zealand and New Zealand Bankers’ Association say.
The COVID-19 outbreak has the potential to impact the operations of New Zealand’s banking sector by affecting banks’ staff, their funding and their customers.
The Reserve Bank has asked all banks about their risk management approaches and preparedness for COVID-19. Reserve Bank Governor Adrian Orr said the responses show the banks are prepared.
“Much of the banks’ focus has been on staff health and safety, and their ability to sustain their operations should the outbreak expand significantly. However, the banks are also well attuned to any impacts on their customers’ businesses, employment, and incomes,” Mr Orr says.
New Zealand Bankers’ Association chief executive Roger Beaumont says customers financially affected by COVID-19, particularly small to medium sized businesses, are encouraged to contact their bank.
Depending on the customers’ individual circumstances potential options for support include:
- Reducing or suspending principal payments on loans and temporarily moving to interest-only repayments
- Helping with restructuring business loans
- Consolidating loans to help make repayments more manageable
- Providing access to short-term funding
- Referring individual customers to budgeting services.
“Each bank will have their own credit policies and approach to providing assistance. It’s important for affected customers to talk to their bank as soon as possible. That gives banks the best chance of offering assistance. Helping customers through any financial stress depends on good two-way communication,” Mr Beaumont says.
The Reserve Bank team are in regular dialogue with bank executives and are watching for signs of funding market pressures or emerging signs of credit stress.
“While we have not seen any significant pressures at this stage, we remain in regular contact with stakeholders across the financial sector. At the Reserve Bank we are prepared in our business continuity role to ensure a well-functioning financial system, including enabling access to cash, ensuring sufficient liquidity in the banking system, and managing a stable payments and settlements system,” Mr Orr says.
“All businesses should be preparing for possible disruptions from COVID-19. Think about how best to operate if staff are temporarily unavailable, or if suppliers have restricted stock, cash-flows are interrupted, and sales decline in some sectors,” Mr Orr says.
ENDS
The New Zealand Bankers’ Association is urging those affected by coronavirus to talk to their banks.
New Zealand Bankers’ Association chief executive Roger Beaumont says there is a recognition it’s in everyone’s best interest for a farmer to have up-to-date business and financial plans.