- “Widening the scheme criteria further supports the supply of credit to businesses in need. Uptake will ultimately be driven by demand from businesses.”
- The New Zealand Bankers’ Association’s chief executive Roger Beaumont said expanding the criteria of the scheme should make it more relevant for businesses.
- The Bankers’ Association says that since March 26, when New Zealand first went into lockdown, banks have deferred all repayments on consumer loans totalling around $21 billion for over 61,000 customers. That represents 7% of total consumer lending. It adds, however, that nearly a quarter of those customers have subsequently restarted their loan repayments.
- The National Council of Rural Support Trusts and New Zealand Bankers’ Association have recently signed the agreement for the Fund. Under the agreement, the RSTs will provide up to $3000, depending on an assessment of need, and the relevant bank will match that dollar for dollar.
- Customers may be eligible for a new loan deferral for up to six months or an extension to their current loan deferral, said Bankers’ Association chief executive Roger Beaumont. But, he said: “Any new or extended loan deferrals will not be automatic.
- “Customers who can resume loan repayments should do so. Many customers have already restarted payments on deferred loans. That shows they understand the benefits of getting back on track if they can.”
- “But my sense would be that banks are being really pragmatic about this, that the advice is for health reasons so banks will be comfortable with people coming into a branch wearing a face mask.”
- Nearly 60,000 borrowers (59,885) had agreed to a deferral of payments on $20.2 billion of home loans, personal lending, credit card or overdraft debt as of June 30, figures from the New Zealand Bankers Association show.
- “As one of the largest industries in the country, we are showing leadership by committing to paying the living wage,” says New Zealand Bankers’ Association chief executive Roger Beaumont.
- According to the New Zealand Bankers’ Association (NZBA), the move will lead to nearly 1800 employees and contractors moving onto the living wage and gaining greater economic independence for them and their families.
