NZBA has come out against the Reserve Bank adding a debt-to-income ratio tool to its macro-prudential toolkit. But the bank lobby group has suggested a serviceability interest rate, or SIR, as a potential alternative.
The New Zealand Bankers’ Association has repeatedly denied claims its members apply “blanket de-risking” policies. Rather it says banks consider prospective clients’ risks on a case-by-case basis.
“They only provide information to the Police when they receive a production order that legally requires them to provide information or when the request complies with the Privacy Act.”
Reserve Bank of New Zealand
Reserve Bank of New Zealand
Ministry of Justice
Debt can finance personal, household and business needs and aspirations. That’s the New Zealand Bankers’ Association’s response to Money Week’s big question: what does debt do for you?
“We often need to borrow money to buy our own home or get a business off the ground. That’s the kind of debt our banks are here to support,” says New Zealand Bankers’ Association chief executive Karen Scott-Howman.
“This is often seen as ‘good debt’. Borrowing for something that’s likely to retain or grow in value over time makes sense. Borrowing for things that will lose value, or ‘dumb debt’, isn’t such a good idea.
“As responsible lenders, banks work hard to ensure their customers know what they’re signing up to when they take out a loan. Being clear on your obligations as a borrower is really important.
“Banks are always willing to provide advice about the lending products and services that are right for your particular circumstances. It’s worth having a chat and checking out your options.”
Tips for managing debt include:
- having a plan to pay off your loans
- asking your bank how you can be debt-free faster
- avoiding ‘dumb debt’
- only borrowing for what you need.
Money Week is organised by the Commission for Financial Capability and runs from 14 to 20 August.
More information is available at: www.sorted.org.nz/moneyweek
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August 12, 2017 – Climate change is recognised as a potential financial risk by New Zealand banks and the NZBA is working with groups such as Deep South Challenge to get a greater understanding of the risks from climate change on investments, said chief executive Karen Scott-Howman.
The Banking Ombudsman Scheme has been providing a free and independent disputes resolution service for 25 years. That’s an important milestone for banks customers, and something worth celebrating, says the New Zealand Bankers’ Association.
“The Banking Ombudsman has made an incredibly valuable contribution to banking in New Zealand since 1992,” says New Zealand Bankers’ Association chief executive Karen Scott-Howman.
“If customers have a problem with their bank, and are not happy with the bank’s response, they can take the issue to the Banking Ombudsman to sort out.
“Banks understand that customer trust and confidence are essential to their ongoing success. The scheme helps support that by providing an impartial disputes resolution service that’s free for customers.
“New Zealanders rate their own banks highly. That’s not just because they’re strong, efficient and well-regulated. It’s also because banks work hard to keep their customers happy, which includes putting right any problems quickly and fairly.
“The Banking Ombudsman Scheme goes hand in hand with NZBA’s Code of Banking Practice, which sets out what customers can expect from their banks as a minimum industry standard.”
The Banking Ombudsman also provides practical customer guidance and information on a range of banking issues.
More information about the Banking Ombudsman Scheme is available at www.bankomb.org.nz.
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Financial Markets Authority