Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Who Pays For Lower Interest Rates?

16th March 2001

Dr Brash’s action to lower bank interest rates is welcomed, but who will pay?

Interest rate falls in recent years has simply caused the banks to raise charges elsewhere. Look at the record, banker’s profits have continued to climb.

While interest rates fall the ordinary customer has paid more and more.

Beware; Dr Brash will take no prudential action to protect you, the ordinary bank customer, as he should.

Conditions of registration of banks in NZ, as laid down in the Reserve Bank Act, state that bankers must act in a “prudent manner” and that they must have appropriate “accounting systems and controls” for the business carried out.

But they don’t.

The responsibility of prudential supervision to ensure the conditions of the Act are observed falls on the Reserve Bank and ultimately the Minister of Finance.

But they choose to neglect this responsibility.

Due to this neglect the National Party Senior Whip John Carter MP told us in Parliament this week that he thought that the best course of action was to sue the Government for failing in their duty to ensure observance.

Also, while in and around Parliament other MPs told us that the “Reserve Bank Act” was not for the protection of ordinary New Zealanders it was simply to prevent the registered banks from going broke.

We don’t accept that, because it is unthinkable that any Act of the New Zealand Parliament could be passed that does not protect the New Zealand public.

Accountability will continue to be demanded by this organisation.


© Scoop Media

Business Headlines | Sci-Tech Headlines


ScoopPro: Helping The Education Sector Get More Out Of Scoop

The ScoopPro professional license includes a suite of useful information tools for professional users of Scoop including some specifically for those in the education sector to make your Scoop experience better. More>>

Big Tax Bill Due: Destiny Church Charities Deregistered

The independent Charities Registration Board has decided to remove Destiny International Trust and Te Hahi o Nga Matamua Holdings Limited from the Charities Register on 20 December 2017 because of the charities’ persistent failure to meet their annual return obligations. More>>

57 Million Users' Data: Uber Breach "Utterly Preventatable"

Cybersecurity leader Centrify says the Uber data breach of 57 million customer and driver records - which the ride-hailing company hid for more than a year - was “utterly preventable”. More>>

Scoop 3.0: How You Can Help Scoop’s Evolution

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>

Having A Cow? Dairy Product Prices Slide For Fourth Straight Auction

Dairy product prices fell at the Global Dairy Trade auction, retreating for the fourth straight auction amid signs of increased production... Whole milk powder fell 2.7 percent to US$2,778 a tonne. More>>


Statistics: Butter At Record $5.67/Block; High Vegetable Prices

Rising dairy prices have pushed food prices up 2.7 percent in the year to October 2017, Stats NZ said today. This followed a 3.0 percent increase in the year to September 2017. More>>


Science: New Research Finds Herbicides Cause Antibiotic Resistance

New University of Canterbury research confirms that the active ingredients of the commonly used herbicides, RoundUp, Kamba and 2,4-D (glyphosate, dicamba and 2,4-D, respectively), each alone cause antibiotic resistance at concentrations well below label application rates. More>>


  • Bill Bennett on Tech