Month: December 2020

In its response to the 2017 consultation, bank lobby group the New Zealand Bankers’ Association  argued the evidence linking high-DTI loans and default was weak, with job loss having the most significant impact on the likelihood of loan default. NZBA suggested a serviceability interest rate as a potential alternative.

Banking became the first industry to become fully living wage accredited in July. Seventeen members of the New Zealand Bankers’ Association pledged to pay staff and contractors (including cleaners and security guards) at least a living wage. An estimated 1800 people received a pay rise as a result.

Bankers’ Association chief executive Roger Beaumont said it was “a complex area”.

New Zealand Bankers’ Association chief executive Roger Beaumont said: “This is a complex area. We will consider the consultation paper to determine our response on behalf of the industry.”

The pilot was being led by the New Zealand Bankers’ Association and included six major banks which would test demand for basic banking services in regional communities.

“What a hub environment like this can help some customers with is that transition to online and understand it’s OK. It’s safe and it’s not that scary.”

The NZBA revealed that over two-thirds of consumer loans that had principal and interest repayments deferred due to the impact of the pandemic were now “back to normal,” and nearly 40% of consumer loans that had reduced repayments were also now back on track.

Association chief executive Roger Beaumont said trial regions were chosen on a range of criteria. “Some of that is geographic spread, so there’s two in the South Island and two in the North Island, and then we wanted to test different scenarios – scenarios where there was still one bank on town remaining, and also… Read more »