Author: Philip vanDyk

The Bankers Association responded to Robertson’s comment that banks had not met the lending expectations of the Government by saying banks had lent $6.1b to businesses since the country went into lockdown on March 26.

“For immediate business needs, banks have lent $6.1 billion to businesses since we went into lockdown on 26 March. That’s lending outside the Business Finance Guarantee Scheme. And it’s almost as much as the total lending limit under the scheme.”

New Zealand Bankers Association (NZBA) chief executive Roger Beaumont said industry feedback had led to the changes and he welcomed Treasury simplifying some rules.

“We welcome Treasury simplifying their scheme rules, as a result of industry feedback. We hope this means more customers are able to participate in the scheme for their longer-term needs.”

NZBA chief executive Roger Beaumont issued a statement saying the scheme was a risk sharing one and that if a borrower defaulted, the banks were required to take steps to recover the money.

The New Zealand Bankers Association said banks had lent businesses $5.9 billion in new loans since March 26. These are loans outside the BFGS because the final deed on the scheme was signed two weeks after the official announcement was made.

More than 100,000 households are now seeking some form of mortgage relief, according to the latest data from the New Zealand Bankers Association. New figures show 49,821 borrowers have deferred all loan payments under the six month mortgage holiday scheme.

In making loans under the Business Finance Guarantee Scheme the banks were bound by the terms set by the Treasury, Bankers Association chief executive Roger Beaumont said. “The rules require banks to have customers provide security for loans under the scheme. Banks are responsible lenders. The loans are not intended to fail, which is why… Read more »