- “Before making any decisions to extend mortgage deferrals banks will need to assess the customer need. It would also involve discussions with regulators and credit reporting agencies on any impact to responsible lending obligations and how the deferred loans are treated.”
- “Banks are seeing customers who have deferred or reduced payments restarting their normal payments. That means people know what’s available when it comes to loan relief, and they also know why it’s a good idea to restart payments if they can.”
- According to the New Zealand Bankers Association a total of 66,870 customers with loans totalling $21.3 billion had reduced their loan repayments since March 26, and a further 55,406 with combined loans of $19.5b had deferred all their loan repayments.
- Bankers’ Association chief executive Roger Beaumont said “mortgage deferrals could provide borrowers financially affected by Covid-19 with immediate relief at an uncertain time.
- Beaumont said before making any decisions to extend mortgage deferrals banks would need to assess the customer need. “It would also involve discussions with regulators and credit reporting agencies on any impact to responsible lending obligations and how the deferred loans are treated.”
- The BFGS lending is also dwarfed by other bank lending to businesses since March 26 when the nation went into lockdown to prevent the spread of covid-19. Banks have lent $12.6 billion in new loans to 21,875 businesses between then and June 30. That’s up from $7 billion on May 26.
- Kiwibank chief executive Steve Jurkovich has been appointed the new chair of the New Zealand Bankers’ Association. He will be taking over from Westpac CEO David McLean, who chaired the NZBA for three years.
- The New Zealand Bankers’ Association confirms Treasury officials met with its members, including the CEOs of the country’s biggest banks, on March 16 to talk at a high level about the possibility of introducing a term lending facility.
- “Other important factors that determine retail interest rates include the cost of wholesale funding from overseas and the cost of domestic funding, which includes rates of return on retail bank deposits.”
- “They’re doing it to provide immediate loan relief to customers in need who have been financially affected by the pandemic. It gives them the ability to defer all loan repayments at an uncertain time, and interest continues to accumulate. Banks are responsible lenders and suggest customers only defer all loan repayments if they need to.”
