Articles

RBNZ pushes out timeframes for the introduction of the Basel III capital reforms and its Open Bank Resolution policy

10.05.2012

Kirk Hope, CEO of bank lobby group the New Zealand Banker's Association, said it was positive the timeframe for OBR's implementation had been pushed back but it was still too tight. And as for a cost-benefit analysis of the policy, Hope said this wasn't necessarily the most useful thing to see.

US taxman's long arm threatens costly Kiwi headaches

04.05.2012

New Zealand financial institutions are fighting a United States tax that threatens to saddle them with millions of dollars in regulation costs and could end up costing Kiwi consumers.

Compliance costs alone will be in the tens of millions of dollars, said Karen Scott-Howman, regulatory director at the New Zealand Bankers' Association.

Outright opposition was not an option because non-compliant institutions would be slapped with hefty withholding penalties, she said. It was "a very likely outcome" that those increased regulatory costs would then be passed on to ordinary consumers.

Anzac Day banking glitch to be investigated

25.04.2012

“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.”

Are new ways of banking safe?

16.04.2012

Kirk Hope from the New Zealand Bankers' Association talks to TVNZ Breakfast about how banks are dealing with skimming and other security threats.

Loan shark regulators must be visible

13.04.2012

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.

New CEO of New Zealand Bankers' Association Kirk Hope says key RBNZ regulatory moves lack policy justification

12.04.2012

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.

ANZ CEO David Hisco succeeds BNZ's Andrew Thorburn as chairman of the New Zealand Bankers' Association

04.04.2012

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

More ATM scam victims emerge

29.03.2012

The New Zealand Bankers' Association has released a list of simple tips to help foil bank card scammers.

How to beat the scammers

29.03.2012

As police continue to investigate the fraudulent skimming of several Auckland ATMs, the New Zealand Bankers' Association has released a list of simple tips to help foil bank card scammers.

FATCA: Washington's tax initiative takes on the world

26.03.2012

FATCA aims to get all financial institutions in the world to identify and report to the IRS on their US customers. What are the implications for New Zealand's financial institutions?

Your credit history up for scrutiny

24.03.2012

Banks, finance companies, telcos, electricity, gas and insurance companies will be able to collect and swap information showing how much credit someone has and how they are getting on with repayments.
Good payers could be offered more competitive interest rates than bad payers, although Bankers' Association regulatory director Karen Scott-Howman stressed that was only a possibility.

Credit history access to affect loan eligibility

21.03.2012

A major overhaul of the credit check system begins on April 1, and will see New Zealand catch up with the rest of the world.

If you've been paying your bills on time, that will show up in your credit report, and that'll mean you are more likely to have your credit application approved, said New Zealand Bankers' Association regulatory directory Karen Scott-Howman.

How to spot internet banking scams

19.03.2012

The New Zealand Bankers' Association is urging bank customers to take commonsense steps to combat online banking fraud as Fraud Awareness Week kicks off.

Concessions for NZ building societies and credit unions in draft Big Brotheresque US crackdown on tax dodgers, but bad news for KiwiSaver providers

10.02.2012

The New Zealand Bankers' Association, which represents the country's banks, has been working with its Australian, Canadian and British counterparts in an attempt to get the US government to alter FATCA, which it says would cost the industry here NZ$100 million to comply with and breach New Zealand's Privacy Act.

Profile: Sarah Mehrtens

04.11.2011

Customer intimacy, process efficiency and teamwork are core values for Sarah Mehrtens F FIN. Sarah is the first woman Chief Executive of the New Zealand Bankers' Association in its 120-year history.

US tax law bites local banks

07.10.2011

Draconian tax laws passed in the US are likely to cost New Zealand banks tens of millions of dollars. New Zealand Bankers' Association chief executive Sarah Mehrtens launched a scathing attack on the Foreign Account Tax Compliance Act and said the law, freshly minted in Washington DC, also posed complications for New Zealand's Privacy Act and threatened financial stability.

Long arm of US money law

01.10.2011

The costs are connected to the Foreign Account Tax Compliance Act (FATCA) passed by the United States Government. Although the legislation has authority within the US only, it puts in place penalties for foreign financial transactions with organisations that do not have information sharing agreements with the US Inland Revenue Service. "Opting out is not an option due to the dominant financial position of the US and the interdependent nature of global finance," said New Zealand Bankers' Association chief executive Sarah Mehrtens.

New Zealand banks 'robust, well regulated and well capitalised'

20.09.2011

The New Zealand Bankers' Association says this country's banks are "robust, well regulated and well capitalised" against the backdrop of global financial market tensions, as Finance Minister Bill English travels to the US to get an update on what direction global economic policy makers are heading in.

NZ banks work with Australians, Canadians and British on changing 'unworkable' US Foreign Account Tax Compliance Act

06.09.2011

The New Zealand Bankers' Association (NZBA) is working with its Australian, Canadian and British counterparts as it battles to get the United States government to alter tax proposals that the New Zealand bank lobby group fears could cost the industry here NZ$100 million to comply with.

NZBA acting chief executive and regulatory director Karen Scott-Howman says her organisation is deeply concerned by the impact of the FATCA with its concerns coming in three areas - compliance costs, conflicts with New Zealand laws, and risks to financial stability, both globally and domestically.

New code combats money laundering

02.09.2011

The New Zealand Bankers' Association has welcomed the Identity Verification Code of Practice. "Our member banks are already working on systems changes to implement the new regime," Bankers' Association acting chief executive Karen Scott-Howman said.

Turning switchers on

23.08.2011

I'd like to extend a reserved apology to the NZ banking community for my earlier comments moaning about our inadequate bank account switching processes.

"At least the Australians have put it on the official agenda," I whined.

As it earlier transpired, the New Zealand Bankers' Association was already on the case last July.

"The Code and system changes that are being introduced will streamline processes so the [bank account] changeover can happen faster and more seamlessly behind the scenes - it's a sensible customer service solution for the electronic age," Sarah Mehrtens, chief executive of the New Zealand Bankers' Association explained by press release.

Building and Construction Minister makes leaky homes announcement

28.07.2011

An agreement has been reached between the government and the banks on a loss-sharing arrangement for bank loans made for the repair of leaky homes that turn sour.

The New Zealand Bankers' Association, which represented the banks in the negotiation, welcomed the conclusion of negotiations.

Leaky homes relief available

28.07.2011

The New Zealand Bankers' Association said eight banks had signed up to lend under the deal. They were ANZ, ASB, BNZ, HSBC, Kiwibank, SBS, TSB and Westpac.

NZBA chief executive Sarah Mehrtens said home owners would still need to meet the banks' lending criteria. She urged home owners to seek independent legal advice "because the FAP may not be for everyone."

"Eligibility and and affordability are key elements of the package," she said.

Leaky homeowners $1 billion relief

28.07.2011

NZBA chief executive Sarah Mehrtens said it was important for owners to understand lending criteria would still need to be met for them to access repair loans.

"Banks have for a long time been working to assist customers who own leaky homes, and what is pleasing about this package is that it does provide some property owners with a further option," Ms Mehrtens said.

Lenders: We can net the sharks

10.07.2011

Mainstream lenders will resist proposed new lending laws and will instead call for tougher enforcement of existing rules.

I'm not sure we neede more legislation in this space. Everything in the Moneylenders (Licensing and Regualtion) Bill 2011 is already covered in other legislation. I'm not sure the Bill would solve the problem for New Zealand, said NZBA chief executive Sarah Mehrtens.

Banks sign up to government's leaky homes deal, Dom Post reports

16.06.2011

Negotiations between banks and government are ongoing, and we are confident they will be concluded before the package is rolled out to leaky home owners. As the content of the negotiations is confidential, we cannot comment on the details," a spokesman for the NZBA said.

Mystery Money

08.06.2011

NZBA chief executive Sarah Mehrtens explains what happens when mystery money lands in your bank account.

$100m bill tipped for NZ as US targets offshore tax evaders

05.06.2011

Complying with the Foreign Account Tax Compliance Act, which comes into force in January 2013, would land institutions with a compliance bill of $100 million the New Zealand Bankers' Association claims. Association chief executive Sarah Mehrtens adds: "This is a big issue for New Zealand. In the case of our banks, the costs of implementing systems to identify all US customers would be very high, and totally disproportionate to any benefit to the US government."

Credit watch on your bills

30.05.2011

Your last 200 bill payments, on average, will become part of your credit record - available for scrutiny by banks and other businesses - under a proposal by the Privacy Commissioner.

Bankers' Association chief executive Sarah Mehrtens said missing a single phone bill payment was unlikely to affect whether a person could get a loan, especially if they had records of long-term regular repayments.

BNZ boss to chair Bankers' Association

26.04.2011

The new chairman of the New Zealand Bankers’ Association (NZBA) for 2011-12 is Bank of New Zealand boss Andrew Thorburn.

Leaky homes: a crisis with no end in sight

05.04.2011

Although a spokesman for the Bankers' Association says there is "goodwill", negotiations with the department of building and housing are dragging on, with no deadline in sight.

The Building and Housing Department referred questions to the minister's office. A spokeswoman said: "Negotiations with the banks are ongoing and we will not be discussing them at this stage."

Leaky home loans not automatic, banks warn

10.03.2011

The Bankers' Association is warning owners of leaky homes that they will not necessarily be entitled to a loan to cover repairs if they sign up to the government package soon to be on offer. Under the package, the Government would pick up 25% of the cost - as would local authorities in cases where they signed off the work. The homeowner would be liable for the rest. When the package was announced, the Government said it would work with banks if people needed a loan to cover their half of the cost. But Bankers' Association chief executive Sarah Mehrtens told a parliamentary select committee that it is important for people to realise they will still have to meet usual credit criteria.

Leaky home fix may be unaffordable for some

10.03.2011

In a submission to the local government and environment committee, the New Zealand Bankers' Association raised concerns about the loan guarantee, saying the term was misleading.

"People would normally think of a guarantee as standing in the shoes of the borrower. What is actually on the table is not that, it's more in the nature of a loss-sharing agreement," chief executive Sarah Mehrtens said.

"We don't want there to be any confusion in the market about what is being offered because clearly we can't step outside our normal lending criteria."

Government may cover 15 per cent to 25 per cent of losses from leaky home loan defaults, Bankers' Association says

10.03.2011

NZBA CEO Sarah Mehrtens said the Association wanted to clarify the nature of any credit support offered by the government."The credit support which is being offered to banks to support its customers has been represented publicly as a “Crown guarantee”. People commonly perceive a guarantee as being given by someone who, in effect, stands in the shoes of a borrower in case of default. To avoid confusion and unrealistic expectations, we think it is important that consumers know that a guarantee of this nature is not being offered by the Government," Mehrtens said.

"What the Government is offering is to enter into a loss sharing agreement with the Banks in relation to any amounts which are lent to fund the approved cost of leaky home repairs. This means that, in the event of a default, Government should contribute a proportion of any shortfall," she said.

Bankers’ Association recommends ‘loss sharing’ between banks and government should be looked at in leaky homes Bill

25.02.2011

The government's 'leaky homes' bill should refer to a possible agreement between banks and the government to share any losses under a joint venture between the two to provide assistance for the nationwide problem, the New Zealand Bankers Association says.

Banks eye new payments system with multiple settlements per day instead of just one

17.02.2011

A new multi-settlement per day domestic payments system is expected to be in place later this year. It will replace the current system where transactions settle just once daily, overnight. Payments NZ was set up last October to take over from the New Zealand Bankers’ Association the Electronic Credit Systems Code and Direct Debit Systems Code, which document operational agreements and arrangements among banks for clearing electronic credits and direct debits.

Banks baulk at having to help fund the Government’s Financial Markets Authority

08.02.2011

Any levy should not simply be targeted at those participants who are in a better position to afford to pay. "Banks should be considered lower risk as they are subject to other regulators such as the Reserve Bank," the NZBA argues.

Negotiations over iGovt identity plans

07.02.2011

New Zealand Bankers’ Association chief executive Sarah Mehrtens said it was delighted Internal Affairs was proceeding with the expansion of iGovt services to the private sector. “Internal Affairs is presenting to our members on the developments shortly and we are looking forward to further information on how these services will be of use to our member banks and their customers. For example, identity verification is important to banks in combating instances of fraud. It will also improve systems for compliance with the new anti-money laundering legislation.”

Take care of your card or take cash say Police

22.01.2011

The New Zealand Bankers' Association confirmed yesterday all New Zealand banks have plans to progressively roll out credit cards with chip and PIN technology to curb skimming operations. Bankers' association chief executive Sarah Mehrtens said introduction of chip and pin technology was aimed at reducing card fraud. The payment industry was working to have all EFTPOS terminals able to accept chip cards with PINs by mid-2011. “Some banks already provide chip cards,” Mehrtens said. “We advise customers who would like a credit card with a chip now to speak to their bank. They may be able to offer one that includes this technology immediately.”

SBS Bank and JPMorgan Chase join New Zealand Bankers’ Association

15.01.2011

Sarah Mehrtens said she was delighted the two banks had decided to join. It's a great start for the association's 120^th anniversary year and strengthens the industry voice of banking in New Zealand.

Bank switching easier with new rules

10.01.2011

New rules to make switching banks easier for customers were initiated by the New Zealand Bankers’ Association and completed by recently formed Payments NZ.

Leading questions: Sarah Mehrtens

30.12.2010

Even for people who prefer a more carefree approach, it's great to have a plan. It's never too soon to start. There's really useful independent advice and money management tips at sorted.org.nz. When dealing with banks and financial institutions there's no such thing as a silly question. Know exactly what you're getting into and what you'll get out of it. When investing, always consider the risks, not just the rewards. Most importantly, look at what the people you have invested with are doing with the money - whether it looks like they will turn a profit. Many investors just focus on the security provided, when the ability to service and repay the money to you over the long term is what matters more. Banks offer products for a variety of circumstances. If you think you're getting out of your depth financially, talk to your bank. It's actually in their interests to help you.

Government needs to finalise guarantee for banks on leaky home loans to break log-jam, home owner says

10.12.2010

Rather than a government guarantee for the extra loans to repair leaky homes, the proposal would be more like a loss-sharing arrangement between government and banks. The proposed legislation lacks clarity on how a ‘government guarantee’ would work. Home owners share banks’ concern about this lack of detail and clarity

Banks hold off over leaky homes bill

10.12.2010

The proposed government guarantee for bank loans for leaky home repairs falls short of what is commonly perceived as a guarantee. What is being proposed would not cover 100 per cent of any loss.

Challenge to Financial Markets Authority’s proposed “draconian” power

01.12.2010

New Zealand Bankers’ Association concerned over proposal to allow Financial Markets Authority to forcibly take over an individual investor’s legal action in the public interest. Some investors would be mortified at the prospect of becoming the centre of media attention in a test case that would involve them laying out their personal financial affairs, including potentially large investment losses.

The importance of a banking code

25.11.2010

The Bankers' Association will announce it is to review the code of banking practice later this week. It matters because the 56-page code tells people what kind of treatment they can expect from banks.

Gripes to bank ombudsman at record high

16.11.2010

The ombudsman scheme is good for customers. It provides an effective dispute resolution service which helps build confidence in the banking sector.

How to avoid being scammed

11.11.2010

People shouldn't give out information relating to their bank account or credit card details. When doing internet banking, ensure your computer has up-to-date virus scanning firewalls and other protective software.

Delays for leaky home package

21.10.2010

Discussions between banks and the government on detail are ongoing.

Kiwibank hopes banking can copy telecoms sector and introduce bank account number portability

17.10.2010

Banks introduce new standards to make switching banks easier for customers

Kiwibank chief mulls account number portability

08.10.2010

Banking industry initiates moves to make switching banks easier.

EQC likely to direct repairs

29.09.2010

The New Zealand Bankers' Association, member banks, and other banks meet with the Ministry of Economic Development and the Earthquake Commission on discussions around the payments process for EQC claims as a result of the Canterbury earthquake.

See also: http://www.beehive.govt.nz/release/government-and-banks-reach-agreement-large-claim-payouts 

Bank survey scam warning issued

16.09.2010

New Zealanders warned about a scam where people posing as bank telephone surveyors try to get their bank account details.

Bank survey scam warning

16.09.2010

New Zealand Bankers' Association urges New Zealanders to be on guard against a telephone bank satisfaction survey scam.

Slow progress of Class Actions Bill

22.07.2010

With respect to bank fees, New Zealand has a different legislative framework to Australia. The Credit Contracts and Consumer Finance Act provides strong protection to New Zealand banking customers. The combination of fees and interest rates customers paid are fair and reasonable.

Money: Cheques dying a slow death

20.07.2010

Consumers are increasingly swapping the "cumbersome" cheque book for the convenience and ease of electronic transactions.

Will the banks support the Govt's financial assistance package for leaky home owners?

16.07.2010

Banks in talks with Government on leaky home assistance proposal.

Banks call for more information to reduce risks

21.06.2010

Proposed changes to the Credit Reporting Privacy Code 2004 represent good progress in helping banks make better credit decisions. But they should go further says the New Zealand Bankers’ Association.

Banks cautious on Government leaky homes proposal

24.05.2010

Banks unable to commit to Government’s leaky home assistance proposal until they had more information. Banks don't yet know enough about the detail and how it would work.

Banks Warned to Watch Fees

23.05.2010

Banks are naturally competitive, and in the case of banks fees their pricing is open to question.

Leaky building package not good enough

18.05.2010

The New Zealand Bankers' Association, representing all the main retail banks, said that while no commitments had been made its members were keen to work with the Government on the details of the scheme.

Banks defend position on exception fees

17.05.2010

New Zealand has a different legislative framework in respect of fees. The Credit Contracts and Consumer Finance Act 2003 provides strong consumer protection to New Zealand banking customers.

New Zealand banks provide their customers with a package of products and services to meet their banking needs. The combination of fees and interest rates customers pay are fair and reasonable. Customers also benefit from a significant number of services within their banking package being free. Banks fees are often avoidable and customers who meet terms with their bank should not have to bear the costs of those who do not.

Class action proposed to recover bank fees

15.05.2010

Banks provide a package of products and services to meet customer needs. The combination of fees and interest rates customers pay are fair and reasonable. New Zealand has a different legislative framework to Australia for fees. The Credit Contracts and Consumer Finance Act provides strong consumer protection to New Zealand banking customers.

Internal Affairs to open database

19.04.2010

New Zealand Bankers’ Association welcomes government move to help financial institutions combat identity fraud by letting them check whether customers' credentials tally with information held by Internal Affairs in its citizenship, passports, and births, deaths and marriages databases.

Bank or NZ Post likely partner for iGovt

15.02.2010

The identity verification scheme is exciting and banks are likely to use it, even if they are not a partner in its operation.

Car park scam keeps banks busy

26.11.2009

More than 100,000 credit cards may be replaced as a result of thieves hacking into payment machines at the Downtown carpark in central Auckland.

Bankers' Association chief executive Sarah Mehrtens said everyone who used a credit card or debit card at the Auckland City Council-owned carpark would have it replaced.

Bankers' Association gets new chief executive

17.09.2009

Sarah Mehrtens is appointed Chief Executive of the New Zealand Bankers’ Association. She has a background in law, commerce, banking and finance and the IT sector.