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

 


New Zealand banks strong, stable and safe

27 February 2013

New Zealand banks strong, stable and safe

New Zealand banks had another solid and stable year according to according to KPMG’s Financial Institutions Performance Survey for the 2012 financial year.

“The survey shows our banks are among the best funded and regulated in the world, and fiercely competitive. That’s good for New Zealanders and our economy,” said New Zealand Bankers’ Association chief executive Kirk Hope.

The report found that net interest margins have not changed significantly over the last year.

“Margins have remained stable. There is less heat in the deposit market because banks have met their core funding ratio requirements. This is balanced by the effects of more borrowers moving to fix their loans, a low credit growth environment, and intense competition in the mortgage market,” said Hope.

Banks have continued to face increased compliance costs as New Zealand moves into line with the new international framework for financial regulation which aims to achieve and maintain financial stability, and includes the new Basel III capital rules.

Other compliance costs include banks preparing their systems for the enhanced anti-money laundering regime, which takes effect in June 2013 and aims to protect New Zealand from financial crime.

Banks are also working to implement the Foreign Account Tax Compliance Act, which has been imposed by the United States government on all foreign financial institutions in an effort to clamp down on tax avoidance by US citizens resident in other countries.

While managing these challenges banks continue to invest heavily in New Zealand.

In 2012 banks made a direct contribution to the New Zealand economy of $4.7 billion which includes employing around 26,000 people and payments to businesses that supply goods and services to the industry. Last year banks also paid $1.3 billion in tax, which represents 16 per cent of total corporate tax paid in New Zealand.

In addition to this direct investment, banks provide essential financial services to New Zealanders by lending to meet personal and business needs, providing a safe place to save and invest money, and maintaining a world-class payments system. Banks also contribute to their communities through a range of sponsorship and volunteer initiatives.

“Our strong and stable banking sector is supporting us through the economic recovery. The sector’s strength is reflected in the fact that several New Zealand banks appear in Global Finance Magazine’s World’s 50 Safest Banks list for 2012,” added Hope.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Budget Policy Statement: Spending Wins Over Tax Cuts; Big Ticket Items Get Boost

Income tax cuts are on hold as the government says “responding to the earthquakes and reducing debt are currently of higher priority”, although election year tax sweeteners remain possible. More>>

ALSO:

Fishy: Is Whitebaiting Sustainable?

The whitebait fry - considered a delicacy by many - are the juveniles of five species of galaxiid, four of which are considered threatened or declining. The SMC asked freshwater experts for their views on the sustainability of the whitebait fishery and whether we're doing enough to monitor the five species of galaxiid that make up whitebait. More>>

ALSO:

Crown Accounts: Smaller-Than-Expected Four-Month Deficit

The New Zealand government's accounts recorded a smaller-than-forecast deficit in the first four months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax. More>>

ALSO:

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news