- “In short, money is relatively cheap at the moment. That’s driven by a number of things, including the all-time low official cash rate, set by the Reserve Bank, which is currently at 0.25 per cent. Other factors include the cost of overseas funding, and Reserve Bank initiatives to increase the supply of money.
- “One issue that will need working through is how the levies to fund the scheme are applied to participating entities,” said Roger Beaumont, chief executive of the NZ Bankers’ Association. “We support a risk-based approach to setting levies where lower risk entities, such as banks, pay lower levies because they are less likely to call on... Read more »
- Beaumont also said the deposit protection scheme needs to take into account the higher minimum capital requirements to be phased in for banks, which he says will come at a high cost and is intended to help banks withstand a one-in-200-year shock.
- The Bankers’ Association supported a risk-based approach to setting levies, where lower risk entities such as banks would pay lower levies because they were less likely to call on the scheme, said chief executive Roger Beaumont.
- Another factor to take into account was higher minimum capital requirements to be phased in for banks, which came at a high cost and were intended to help banks withstand a one-in-200-year shock.
- “We support a risk-based approach to setting levies where lower risk entities, such as banks, pay lower levies because they are less likely to call on the scheme.”
- “Some banks have individually made their own commercial decisions to phase out cheques. Some have announced dates for this, while at least one already does not accept or issue them. We’re not aware that any previously announced dates have changed.”
- ANZ, ASB, BNZ, Kiwibank, TSB and Westpac announced today they would honour an earlier commitment not to shut any regional offices until a pilot of four small-town banking hubs wraps up.
