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

 


RBNZ's Wheeler drawn into Green Party politicking on banks

RBNZ's Wheeler drawn into Green Party politicking, says bank returns still below GFC levels

By Paul McBeth

Dec. 4 (BusinessDesk) - Reserve Bank governor Graeme Wheeler has scotched claims by the Green Party that he has a bias in favour of the country's Australian-owned banks, and defended statements saying the lenders' return on equity is still below pre-crisis levels.

Wheeler, who delivers his maiden monetary policy statement on Thursday, released bank profitability figures given to the Greens, which he used to support comments before Parliament's finance and expenditure committee that bank profits were "about average or below" other developed nations. Greens co-leader Russel Norman accused Wheeler of misleading Parliament over the claim, which isn't directly addressed in the RBNZ statement.

Wheeler released charts showing New Zealand's banks' after-tax return on assets and equity between 2009 and 2001 was in the bottom half of OECD countries, excluding the euro-area. Pretax returns show New Zealand lenders' returns in the top six for the period. The comparisons aren't clean-cut with some countries shown as before tax, and others after tax.

"My response to the select committee represented my understanding of the information available at the time," Wheeler said in a statement. "Our analysis was completed after the hearing and we released to the Green Party in response to their request which followed the hearing."

The Nov. 7 select committee hearing on the central bank's financial stability report was Wheeler's first appearance before politicians, and degenerated into a farce when the governor, his entourage, and everyone else were cleared from the room so MPs could argue about whether they could seek more time after a late start.

Wheeler refuted the Greens' claim the central bank is biased towards the Australian lenders, saying the bank "takes seriously its mandate from Parliament to supervise the New Zealand banking system and does so without favour."

The Australian lenders' profitability has recovered on a return on assets basis, but was still below pre-global financial crisis levels as a return on equity, Wheeler said.

"That's partly because these banks are building up capital as part of the tougher Basel III regulatory requirements," he said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news