Month: October 2023

“Without retrospective change, there is a real risk that a minor error in disclosure, which has no borrower impact and does not reflect irresponsible or poor lending practices, will have serious consequences,” the NZBA submission said.

The seven hubs are part of a trial by the New Zealand Banking Association to find a new approach to providing banking services in rural areas. Six banks are involved – ANZ, ASB, BNZ, Kiwibank, TSB and Westpac.

“Every time there’s a change, banks need to adjust their lending policies and processes and re-train staff. Part of developing quality regulation is making sure it’s fit for purpose the first time around.”

New Zealand Banking Association chief executive Roger Beaumont told NZ Adviser that the drop in the number of new home loans was a likely reflection of the state of the housing market and wider economic conditions during the first half of 2023.

“For a long time, when interest rates were at an historic low, people who relied on income from bank deposits got relatively low returns. Now that interest rates are up, people are investing more in term deposits.”

“Over 43% of home loan customers were ahead on their loan repayments, compared to 1.4% of home loan customers behind on their repayments. That shows that many people with home loans are managing relatively well. It means that those paying more than their minimum repayments likely built in a cushion in case their circumstances change.”