- Citing an economic review, NZBA has said lifting the capital requirements would have economic welfare costs of $1.8 billion a year and that it would disproportionately affect agricultural, small business lending, and savers.
- “Today’s announcement will have an economic impact and each bank will now consider the implications for their business and customers, and will be developing their own commercial response.”
- New Zealand Bankers’ Association chief executive Roger Beaumont said banks worked closely with any agricultural customers who were experiencing financial issues.
- A report commissioned by bank lobby group the New Zealand Bankers’ Association, heavy on criticism of the capital proposals, argued the potential benefits of appealing prudential regulatory decisions on their merits are large.
- The Bankers Association says lenders work closely with farmers and it points to the low number of mortgagee farm sales – fewer than 10 a year out of 52,000 farms across the country.
- In a submission, the NZ Bankers’ Association (NZBA) said it agrees and supports the objective of maintaining a sound banking system and guarding against banking crises, but argues that NZ’s major banks are already well capitalised.
- “Our banks are profitable because they’re very efficient compared to similar banks around the world. They manage their costs very well. Another factor is that they did relatively well through the global financial crisis. None failed or were bailed out by the government, unlike in Europe and the US where they recovered their profitability more... Read more »
