- Politicians from both sides of the House sought answers on how banks would protect the estimated 1% to 2% of customers who were likely to never access digital banking services. NZBA chief executive Roger Beaumont said phone banking was an “elegant solution” for customers in this situation, because most still had a landline.
- “It’s great to have interest in our banking hubs trial from regions like the Far North. Banks are closing some branches because customers prefer more convenient ways of banking. Some branches get fewer than 10 customers a day.”
- “In short, money is relatively cheap at the moment. That’s driven by a number of things, including the all-time low official cash rate, set by the Reserve Bank, which is currently at 0.25 per cent. Other factors include the cost of overseas funding, and Reserve Bank initiatives to increase the supply of money.
- “One issue that will need working through is how the levies to fund the scheme are applied to participating entities,” said Roger Beaumont, chief executive of the NZ Bankers’ Association. “We support a risk-based approach to setting levies where lower risk entities, such as banks, pay lower levies because they are less likely to call on... Read more »
- Beaumont also said the deposit protection scheme needs to take into account the higher minimum capital requirements to be phased in for banks, which he says will come at a high cost and is intended to help banks withstand a one-in-200-year shock.
- The Bankers’ Association supported a risk-based approach to setting levies, where lower risk entities such as banks would pay lower levies because they were less likely to call on the scheme, said chief executive Roger Beaumont.
- Another factor to take into account was higher minimum capital requirements to be phased in for banks, which came at a high cost and were intended to help banks withstand a one-in-200-year shock.
- “We support a risk-based approach to setting levies where lower risk entities, such as banks, pay lower levies because they are less likely to call on the scheme.”
