- Spokesman Philip van Dyk clarified on Friday that it had decided it only made sense to release them “once we’ve finalised the code and responded to submitters. That way it’s clear how we’ve responded to submissions in the revised code,” he said.
- “Adopting principles, rather than prescriptive rules, means banks will have to think carefully about how they’re meeting those customer commitments. That’s quite different from what’s required in Australia.”
- “It shows that banks are continuing to work closely with their agri clients. That’s not surprising given the high level of bank support for the agri sector.”
- New Zealand Bankers’ Association chief executive Karen Scott-Howman said banks were responsible lenders and that would not change, no matter what the central bank’s rules were.
- “We have no issues with the particular thresholds set by the Government. The main concern for the banking industry is being able to meet its obligations within statutory deadlines, in consultation with other parties.”
- “We are very open to have conversations, but so far there’s no regulator which has consulted publicly on it.” Scott-Howman stresses the importance of security of people’s financial data.
- “Banks are particularly interested in the borrower’s ability to repay the loan, and the security provided for the loan. People seeking home loans need to be up front with the bank about their personal circumstances, such as existing financial obligations and outgoings.”
- “We’re particularly pleased that the FMA has confirmed there are no systemic conduct issues around the use of the benchmark. That provides an assurance that banks can use the rate with confidence,” Scott-Howman says.
- NZBA has come out against the Reserve Bank adding a debt-to-income ratio tool to its macro-prudential toolkit. But the bank lobby group has suggested a serviceability interest rate, or SIR, as a potential alternative.
