Author: Philip vanDyk

The New Zealand Bankers’ Association said banks had been informed that a Reserve Bank application to allow them to open had been declined and had shut their doors.

NZ Bankers’ Association CEO Roger Beaumont said “uptake will ultimately be driven by demand from businesses”.

NZBA data showed that since March 26 when the country first went into lockdown its members have lent $14.7 billion to businesses outside of the BFGS to more than 25,600 businesses.

“Widening the scheme criteria further supports the supply of credit to businesses in need. Uptake will ultimately be driven by demand from businesses.”

The New Zealand Bankers’ Association’s chief executive Roger Beaumont said expanding the criteria of the scheme should make it more relevant for businesses.

The Bankers’ Association says that since March 26, when New Zealand first went into lockdown, banks have deferred all repayments on consumer loans totalling around $21 billion for over 61,000 customers. That represents 7% of total consumer lending. It adds, however, that nearly a quarter of those customers have subsequently restarted their loan repayments.

The National Council of Rural Support Trusts and New Zealand Bankers’ Association have recently signed the agreement for the Fund. Under the agreement, the RSTs will provide up to $3000, depending on an assessment of need, and the relevant bank will match that dollar for dollar.

Customers may be eligible for a new loan deferral for up to six months or an extension to their current loan deferral, said Bankers’ Association chief executive Roger Beaumont. But, he said: “Any new or extended loan deferrals will not be automatic.