“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.”
Ministry of Justice
“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.