Month: January 2022

“Banks are in the business of lending, it’s fundamental to what they do, they want to be able to lend to customers but they’re not going to do that if it risks breaching their regulatory obligations because the consequences for that are really serious.”

“The law change has made banks’ ability to lend less flexible,” says New Zealand Bankers Association CEO Roger Beaumont.

New Zealand Bankers’ Association chief executive Roger Beaumont​ said bank terms and conditions generally include not sharing your bank account access details with anyone else.

Some advisers have also complained of too many different systems from different banks, meaning the multiple changes come in many different forms, depending on which bank they are dealing with. But the NZBA says there cannot be a uniform approach across the banking sector for competition reasons.

Bankers’ Association chief executive Roger Beaumont said he welcomed the Government’s decision to look into the “unintended consequences” the CCCFA amendments were having on mortgage lending. “Banks are caught between meeting customer needs and ensuring they comply with the law,” he said.

The New Zealand Bankers’ Association warned the Government as far back as 2019 that changes to lending laws could cut people off from mortgages they could likely afford to pay.

“We welcome any investigation into the unintended consequences of the new lending rules. In our submissions on the CCCFA law change and new regulations we’ve set out our concerns all along the way.”

The New Zealand Bankers’ Association chief executive Roger Beaumont told Stuff the law change meant banks had “much less flexibility or room for lender discretion than was previously the case.”

“Banks are very much in the business of lending. They are also responsible lenders and take requirements to comply with the law very seriously.”

“The new [CCCFA] rules are fairly tight and there’s much less flexibility or room for lender discretion than was previously the case. For example, you might need to provide evidence of recent transactions so your bank can get a clear idea of your debts and expenses. This means it will take longer to get a… Read more »