“We welcome Treasury simplifying their scheme rules, as a result of industry feedback. We hope this means more customers are able to participate in the scheme for their longer-term needs.”
NZBA chief executive Roger Beaumont issued a statement saying the scheme was a risk sharing one and that if a borrower defaulted, the banks were required to take steps to recover the money.
The New Zealand Bankers Association said banks had lent businesses $5.9 billion in new loans since March 26. These are loans outside the BFGS because the final deed on the scheme was signed two weeks after the official announcement was made.
Finance and Expenditure Committee
More than 100,000 households are now seeking some form of mortgage relief, according to the latest data from the New Zealand Bankers Association. New figures show 49,821 borrowers have deferred all loan payments under the six month mortgage holiday scheme.
The New Zealand Bankers’ Association has discovered and corrected a reporting error in lending data published on its website.
The error relates to data classification and resulted in some movement, both up and down, across the data categories.
Of particular interest, banks have lent $5.9 billion in new loans to business since 26 March instead of the previously reported $6.9 billion.
“We sincerely apologise for the error. We have clarified the data classifications and are confident that future reporting will reflect an accurate picture across the sector,” says New Zealand Bankers’ Association chief executive Roger Beaumont.
The consumer and business lending data can be found under the Covid-19 section here: https://www.nzba.org.nz/consumer-information/
ENDS
In making loans under the Business Finance Guarantee Scheme the banks were bound by the terms set by the Treasury, Bankers Association chief executive Roger Beaumont said. “The rules require banks to have customers provide security for loans under the scheme. Banks are responsible lenders. The loans are not intended to fail, which is why lending and eligibility criteria apply.
“However, banks have quite independently loaned $6.9 billion to business customers in the four weeks since March 26.”
Banks say they’re here to help but can’t help every business in every sector. “If the business case doesn’t stack up or isn’t justifiable, well that’s when it gets really hard and really challenging,” said New Zealand Bankers’ Association chief executive Roger Beaumont.
The Bankers’ Association said so far $28.9 billion worth of new loans or restructured loans had been agreed with close to 36,000 customers.