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United States Internal Revenue Service and Treasury

“Banks are certainly standing behind their customers,” says Kirk Hope of the New Zealand Bankers Association. “No customers will be adversely affected as a result of this payments issue.”

The New Zealand Bankers’ Association today welcomed KPMG’s annual Financial Institutions Performance Survey (FIPS). In its 25th year, the 2011 survey shows New Zealand has a strong, stable and highly competitive banking sector that continues to serve New Zealand businesses and consumers very well in a globally uncertain environment.

“Our banks are well placed to face the coming challenges, which include higher cost of funds, increased regulatory costs, and continued low credit growth,” said New Zealand Bankers’ Association chief executive Kirk Hope.

Increases in bank profits for 2011 were largely driven by a reduction in bad and doubtful debts, a modest increase in margins for the full year, and a strong focus on cost management. While provisioning has reduced year on year from $812.7 million in 2010, to $548.5 million in 2011, business challenges, such as cost of funds, low credit growth and competition, may see pressure on margins in the coming year.

The regulatory burden is also increasing; for example, achieving compliance with the Reserve Bank’s prudential requirements including accelerated timeframes for new capital standards, Open Bank Resolution, and meeting new United States tax obligations. “Changes to the regulatory landscape have the potential to increase the costs for customers in 2012 and beyond. Any increased costs must be justified by the benefits of regulatory change,” said Hope.

“Let’s not forget the contribution banks make to our economy. The banking industry spent $4.46 billion in New Zealand in 2011. This includes payments to New Zealand businesses that provide goods and services to banks, contributions to community and voluntary programmes, and financial literacy initiatives. It also includes salaries paid to over 25,000 people who are employed by banks in New Zealand,” said Hope.

Loan shark regulators should open shops in at-risk areas to deter dodgy lending and give borrowers easier access to official help, says a banking leader. Bankers’ Association chief executive Kirk Hope said opening a shopfront would help regulators enforce the rules against predatory lenders in areas where they were concentrated.

Reserve Bank of New Zealand

The new chief executive of the New Zealand Bankers’ Association says banks need more policy detail and more justification from the Reserve Bank on its plans to implement new global capital adequacy requirements for local banks ahead of the timetable set by the international regulatory overseer.

With heightened awareness around recent card fraud, the New Zealand Bankers’ Association has issued a reminder to check bank statements regularly.

“We can all help in the fight against fraud by keeping an eye on our bank accounts. If you identify an unauthorised transaction, contact your bank immediately,” said New Zealand Bankers’ Association chief executive Kirk Hope.

“Our banks take customer security very seriously. Banks constantly monitor fraud trends and have systems in place to help stay ahead of the criminals,” said Hope.

As well as checking bank statements for unauthorised transactions, customers can help prevent card fraud by following these simple tips:

In its statement the New Zealand Bankers’ Association (NZBA) quoted Hisco as saying a strong and resilient banking sector was crucial for New Zealand.

A strong and resilient banking sector will play a critical role in New Zealand’s ongoing economic recovery, said the new chairman of the New Zealand Bankers’ Association (NZBA), David Hisco.

Mr Hisco, CEO of ANZ National, has been elected chair of the NZBA for 2012/13. Westpac New Zealand chief executive Peter Clare is the deputy chair.

“It is a privilege to have the opportunity to represent New Zealand’s banking sector, which is one of the most secure and efficient in the world,” Mr Hisco said.

“The sector has arguably never been more important to New Zealand. In the post-crisis environment, having a strong and resilient banking system is critical for New Zealand’s ongoing economic recovery.

“I look forward to working with colleagues from across the industry to promote a banking sector that continues to invest in New Zealand, while supporting consumers, businesses and the country’s economic future.”

ANZ takes over the chair bank role from Bank of New Zealand. “I look forward to working with David Hisco, and am pleased to acknowledge the contribution of Andrew Thorburn who chaired the NZBA Council over the last year. Of particular note during that time was the banking industry’s response to those affected by the Canterbury earthquakes,” said NZBA chief executive Kirk Hope.

The election of a new chair coincides with Mr Hope recently taking on the role of NZBA chief executive.

The New Zealand Bankers’ Association has welcomed the government’s release today of a draft bill targeted at loan sharks and fringe lenders.

The draft bill, which will amend the Credit Contracts and Consumer Finance Act 2003, proposes introducing a duty for all lenders to practice responsible lending.

The Ministry of Consumer Affairs has acknowledged banks and some other lenders are already committed to responsible lending. “The banking industry supports responsible lending because of the benefits to consumers,” said New Zealand Bankers’ Association chief executive Kirk Hope.

“We are also pleased to see that the draft bill provides for classes of lenders to be treated differently under the Responsible Lending Code. This means loan sharks can be specifically targeted without imposing unnecessary costs for the most responsible lenders in the market.”

The Association is concerned that any law changes avoid unintended consequences and unnecessary costs. The success of the reforms will depend on robust enforcement.

“The best crafted law will have little effect if it is not properly enforced against irresponsible players in the market,” said Hope.