Month: August 2024

“We’d encourage anyone experiencing financial difficulty to talk to their bank as soon as possible. The sooner you talk to your bank, the better placed they’ll be to assess your particular circumstances and discuss options to try to find a way through.”

“We will assess which initiatives could involve an industry approach and which ones banks will need to address individually.”  

Chief executive Roger Beaumont praised the report: “The Commission has taken a well-informed and considered approach to the market study, which has provided useful insights into the New Zealand banking sector. We’re particularly pleased to see the Commission’s focus on the regulatory environment in which our banks operate … We support quality regulation that makes… Read more »

“We’re particularly pleased to see the Commission’s focus on the regulatory environment in which our banks operate, and how that impacts further competition in the sector.”

The New Zealand Banking Association labelled as “outrageous” claims its members misled the Reserve Bank in their most recent reporting of credit availability to the rural sector.

The NZBA’s Beaumont also has concerns around personal liability and its impact on lending decisions. “This likely creates a zero-tolerance for any potential breach, which could result in an overly conservative approach to lending under the [CCCF] Act, and may in turn make accessing consumer credit unnecessarily difficult. It could also mean consumers who could… Read more »

“We think banks should be accountable for CCCFA compliance as entities, rather than having liability targeted at individuals.” Beaumont says disclosure obligations, which include punitive penalties even when there is no material impact on the borrower, are another problem.