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

 

Brewing: Lion To Buy Cult Upper Hutt Brewer Panhead

Lion - Beer, Spirits and Wine (NZ), New Zealand's biggest beer maker, has agreed to buy Panhead Custom Ales from the family of founder Mike Neilson, its second such purchase of a popular craft brewer after the acquisition of Dunedin-based Emerson's Brewing Co in 2012. More>>

ALSO:

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news