- New Zealand Bankers’ Association chief executive Roger Beaumont, who is pleased to see most farmers remain satisfied with their bank, said he expects RBNZ’s capital requirements proposal to a net cost to the New Zealand economy of $1.8 billion a year.
- NZBA has denied suggesting that the government should ever bail out the banks, saying that instead an independent report merely speculated that in the event of a bank failure, a government would be reluctant to allow customers to take a haircut on their deposits.
- The New Zealand Bankers’ Association and the Banking Ombudsman agree with the Reserve Bank that disclosure of banks’ breaches of their conditions of registration should be limited to “material” breaches only.
- In response to Orr’s comments an NZBA spokesman said the lobby group’s submission did not suggest the government should pay out in the event of a bank failure.
- NZBA describes the Reserve Bank proposals as excessive and maintains they will cost “households, businesses and our economy” around $1.8 billion a yea
- New Zealand’s banks are calling for the Reserve Bank to rethink its plan to require them to hold more capital to help withstand financial shocks, claiming it risks putting “a handbrake” on the economy.
