- “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.”
- The NZ Banking Association argues higher rates for farmers can be attributed to Reserve Bank rules requiring its members to hold more capital to insulate against losses from riskier rural loans.
- The NZ Banking Association, in its submission to the select committee, said farms were a business so “inherently riskier” than a home loan as risk and price was based on the ability to repay the loan if something goes wrong.
- Banking Association chief executive officer said banks had “nothing to hide”. “We’re a very open and transparent industry, it’s partly because we’re so heavily regulated, we’re happy to be open and transparent.”
- In response, the New Zealand Banking Association said it would review international best practice in this area by September 2024 and consider updating the current approach in the Code of Banking Practice.
- Beaumont said the trial found customers used the banking hubs less than they would single-brand bank branches, which was why the participating banks recently decided to renew their commitment not to close regional branches for another three years.
- New Zealand Banking Association chief executive Roger Beaumont said there wasn’t “significant demand” for the physical services, but most of the hub network will remain.
- “Our banks currently hold around $60 billion in capital. That investment is essential to banking in New Zealand and, to maintain that investment, their owners need a return. The banks’ return on equity is average compared to other major New Zealand businesses,” Beaumont said.
- “NZBA and the participating banks put a huge amount of work into developing the hubs trial. We are proud of what we delivered, and most of the hub network will remain,” Beaumont said.
- NZ Banking Association chief executive Roger Beaumont said that once banks are aware of a customer’s category three status, they can work through available options.
