- “Our banks are telling me that approximately 10% of loans that would’ve been approved prior to December 1 are now being declined because of these regulations.”
- New Zealand Bankers’ Association chief executive Roger Beaumont said the current economic and regulatory environment certainly affected first-home buyers.
- “Financial institutions are in contractual relationships with intermediaries,” the association wrote. “Intermediaries are not their employees or contractors, and financial institutions do not have the ability to “manage” or “supervise” intermediaries outside of what is contractually agreed on a case-by-case basis.” The NZBA called for “monitoring”, rather than “managing” and “supervising”, intermediaries.
- “While we agree with the government’s aim to protect vulnerable consumers from unscrupulous lenders, the one-size-fits-all approach for all lenders and all loan types means banks don’t have the same discretion or flexibility they used to.”
- Beaumont said the one-size fits all approach for all lenders and all loan types meant the banks did not have the same discretion or flexibility as before.
- “We don’t think the tweaks published today will make a big difference for most borrowers. That’s because most of the existing requirements remain in place.”
- “We don’t think the tweaks published today will make a big difference for most borrowers. That’s because most of the existing requirements remain in place, meaning customers will still have to provide detailed information about their spending, resulting in a more painstaking process and more loan applications being declined than before the December rule change.”
- “Most of the existing requirements remain in place, meaning customers will still have to provide detailed information about their spending, resulting in a more painstaking process and more loan applications being declined than before the December rule change,” Beaumont said.
- “The government’s rushed attempt to fix the problem hasn’t made things easier for consumers seeking credit. Instead, it’s raised hopes of a solution that hasn’t been delivered.”
- New Zealand Bankers’ Association chief executive Roger Beaumont said the delay probably would not make much difference because the “proposed tweaks” would not change much.
