- Cash in circulation rose by 8 percent last year. There’s now $5 billion in circulation despite the fact cash use is declining. New Zealand Bankers’ Association chief executive Kirk Hope joined Paul Henry in studio to explain how and why this is occurring.
- New Zealand Bankers’ Association chief executive Kirk Hope said banks were working closely with dairy farmers to help them manage through tough times.
- The New Zealand Bankers Association says it’s not discrimination – but that banks need to ensure mortgages are sustainable and a recent law change means they need to be even more careful that they are lending responsibly.
- “New Zealand banks operate in a different market and regulatory framework compared to their Australian counterparts. Any changes in New Zealand are more likely to be driven by customer demand.”
- “The net interest rate margin remains relatively flat and banks are really generating their profits off a reduction in expenses and also provisioning that is at historically low levels.”
- Hope pointed to NZ$6.6 billion contributed to the New Zealand economy in 2014 in wages to 25,000 employees and other spending, along with NZ$1.8 billion paid in taxes.
- “It’s a pretty competitive market; that’s one reason banks may choose not to pass on any additional capital costs to their customers,” he said. “They may of course choose to do that.”
- Hope said all of the products that were available in the past were still available. Asked how long cheques would still be around Hope said that was directly related to customer demand. “If there is demand for it they will still be available.”
