“In particular, further analysis needs to be carried out on what impact CBDC could have on accelerating bank runs, for example if consumers respond quickly to rumours of a bank’s financial stress by transferring private money into CBDC.”

“All the key duties in the bill either exist or are underway. The legislative process would simply duplicate and potentially slow down this fast-moving banking industry response.”

“Removing the overly prescriptive regulations and updating the Responsible Lending Code will help bring back flexibility and discretion for banks to help customers,” Beaumont said.

The banking industry welcomes the government’s removal of affordability regulations under the Credit Contracts and Consumer Finance Act, and update of the Responsible Lending Code, to help improve access to lending.

New Zealand Banking Association chief executive Roger Beaumont says: “We are pleased to see the removal of overly prescriptive affordability assessments. This will help fix the one-size-fits-all approach that treated all types of lending and borrowers the same.

“Banks are responsible lenders and take their obligations under the law and to their customers seriously. The change still means that consumers are protected, and lenders need to be responsible.

“Removing the overly prescriptive regulations and updating the Responsible Lending Code will help bring back flexibility and discretion for banks to help customers. This is especially the case for national emergency situations or for customers in need.

“This is a good first step in the process of amending the CCCFA. Banks look forward to engaging with the government in the next phase.”

ENDS

The Reserve Bank of New Zealand – Te Pūtea Matua (more…)

Beaumont applauded local banks for how they managed the outage. “Given the scale of the issue and the global nature of the issue, our banks responded incredibly fast, and were able to affect change and resume normal services relatively quickly for customers.”

“All banks have systems in place to help them comply with their anti-money laundering obligations, including processes to monitor and report suspicious activity. Banks are also subject to continuous supervision from the Reserve Bank of New Zealand.”

Office of the Privacy Commissioner – Te Mana Mātāpono Matatapu (more…)

Commerce Commission (more…)

“In this case, it appears the local authority is exercising its power under the Local Government (Rating) Act 2002 to collect the rates due. Banks take their obligations to comply with the law very seriously.”