Make a date with your money
30.08.2013
The New Zealand Bankers’ Association is encouraging people to make a date with their money during Money Week, which runs from 1 to 7 September.
“The idea is to set aside some time to take stock of your financial situation and make a plan for the future,” said New Zealand Bankers’ Association chief executive Kirk Hope.
“Personal money management and financial goals often end up as lower priorities in our busy lives, where work and family pressures can take precedence. If you can sort yourself out financially, or at least know where you’re going with your money, it can often alleviate pressures in other areas of your life.
“Most people think about their personal finances when faced with big life events such as leaving home, going studying, buying a house, starting work, getting married, or retiring. Money Week provides an opportunity to take the plunge now.
“If you’re looking for some professional advice about managing your money, your bank is a good place to start.
“Our banks are right behind improving financial literacy. It’s all about people making informed choices to improve their financial well-being. That’s good for banks, and good for their customers.”
The Commission for Financial Literacy and Retirement Income’s 2013 Financial Knowledge and Behaviour Survey revealed that banks are New Zealanders’ main source of financial advice. Family and friends are the second most popular source of financial advice, with financial advisers coming well down the list.
“While you’re likely to trust family and friends, they may not be best placed to advise on financial matters. Seeking professional advice makes sense for the most significant financial decisions of our lives,” Hope said.
The New Zealand Bankers’ Association has congratulated the government on two positive moves in the area of business regulation. Today a unique New Zealand Business Number is being rolled out, and earlier this week the Financial Markets Conduct Act passed.
“A single reference number for all New Zealand companies will help businesses easily identify themselves to government agencies and other businesses. This is particularly useful for electronic transactions. It will also reduce business costs and provide certainty to those dealing with businesses,” said New Zealand Bankers’ Association regulatory director Karen Scott-Howman.
“The passage of the Financial Markets Conduct Act is an historic moment and represents a significant milestone. The new law brings our securities regulation up to date and will do much to strengthen our capital markets.
“It will give investors increased confidence in their ability to participate in the financial sector.
“These two milestones show the government’s commitment to its Business Growth Agenda, which aims to drive business growth and create a more productive and competitive economy,” Scott-Howman said.
New Zealand Bankers’ Association chief executive Kirk Hope said people should be aware they may be declined loans because of the new restrictions and advised people to talk to their bank about individual needs and circumstances.
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Kirk Hope talks to Geoff Robinson on Morning Report about lending restrictions imposed by the Reserve Bank.
“While there are positive moves to deal with the supply issue, that will take some time to be resolved. Credit growth, currently at around five per cent, is not driving this,” said New Zealand Bankers’ Association chief executive Kirk Hope.
In response to the Reserve Bank imposing limits on higher loan-to-value ratio mortgage lending today, the New Zealand Bankers’ Association said banks would continue to work hard to meet their customers’ needs within the new restrictions.
“People should be aware they may be declined loans because of the new restrictions imposed by the Reserve Bank. It’s worth talking to your bank about your individual needs and circumstances,” said New Zealand Bankers’ Association chief executive Kirk Hope.
“While the lending restrictions will adversely affect some businesses and householders seeking low deposit loans, our members are committed to meeting their obligations as registered banks and will comply with the new lending requirements.
“Most small New Zealand businesses raise investment capital through equity in their homes. LVR caps may limit their ability to invest in their businesses.
“The lending limits may also make it more difficult for first-home buyers and home-owners seeking a top-up loan for renovations.
“We have reassured government that as an industry we will respond constructively and responsibly to the new lending limits.
“Our banks are very competitive, and will continue to do all they can to meet the needs of all sectors of their customer base.
Hope added that the real issue is a lack of housing supply in some parts of the country, not the availability of cheap credit.
“While there are positive moves to deal with the supply issue, that will take some time to be resolved. Credit growth, currently at around 5%, is not driving this.”
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