Author: Philip vanDyk

Bankers’ Association chief executive Roger Beaumont said on Monday that it understood why the Reserve Bank had been unable to say much at that time.

Roger Beaumont, chief executive of the New Zealand Bankers’ Association, said it was an ongoing challenge and banks recognised it was tough for older customers in particular, who had larger amounts of money in the bank and depended on the income it earned, to subsidise their living costs.

Bankers’ Association chief executive Roger Beaumont said that “as it was a security issue we understand why the Reserve Bank cannot say much more at this stage”.

Roger Beaumont, chief executive of the New Zealand Bankers Association, says the outbreak of Covid-19 has sped up trends in the banking industry that were already happening.

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.