Financial Markets Authority
Author: Philip vanDyk
AML/CFT ‘Early’ Regulatory Package Exposure Draft
Ministry of Justice
The Government’s had another go at fixing problematic credit rules it first implemented nearly 18 months ago, but the bankers are still not thrilled
NZBA’s chief executive Roger Beaumont, asked for a response to the Government’s latest repair effort, said the tweaks to the CCCFA regulations “still mean affordability assessments are needed for all types of lending and borrowers. This also means banks no longer have the discretion or flexibility to help customers in need, for example in cases… Read more »
Would RBNZ’s bank resolution work? No, say the experts
The NZ Banking Association also questioned whether OBR would work, saying it is unique to NZ and that there are no examples of it working anywhere, with or without a deposit guarantee scheme.
Debate rages over call for bank levy and profits inquiry
“Last year banks made a net contribution to our economy of $1.92bn. They spent $9.1bn running their businesses and paying tax in New Zealand, compared to combined profits of $7.18bn,” Beaumont said.
Urgent calls for government to recognise economic harm as separate form of violence
Beaumont says that recent changes to the Credit Contracts and Consumer Finance Act, which require the same affordability assessments for all borrowers, mean that banks no longer have the discretion and flexibility to help customers in emergencies or cases of economic harm.
NZ’s big banks may be ‘fat, dumb and happy with an apathetic, stable customer base.’ But what does that mean for competition?
“If you want a new mortgage, banks do want to see that history of behaviour and activity. But that’s a good example of where open banking in play will make that analysis by a competitor bank a whole lot easier. Because the data exchange will be a whole lot simpler than filling out a whole… Read more »
Regulation, saturation and economic slowdown: What’s the future for buy now pay later?
In its submission on the proposed regulation, the NZ Bankers Association said all BNPL inquiries should have to comply with the credit law’s affordability principle. “There is no clear justification for treating BNPL contracts differently to other consumer credit contracts.”
Union calls for 5% levy on ‘excess bank profits’
New Zealand Banking Association chief executive Roger Beaumont said bank profits looked big because they were among the country’s biggest companies. “They employ over 28,000 people in New Zealand and lend over $540b to fund household and business needs. Last year banks made a net contribution to our economy of $1.92b. They spent $9.1b running… Read more »
Bank workers’ union wants 5% levy on the profits of New Zealand’s big four Australian-owned banks
“Last year banks made a net contribution to our economy of $1.92 billion. They spent $9.1 billion running their businesses and paying tax in New Zealand, compared to combined profits of $7.18 billion … Our banks’ average return on equity is 13.4%, which falls in the middle of the pack when compared to other major… Read more »
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