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


Interest rate swaps – further information being assessed

Interest rate swaps case – further information being assessed
Issued: 2 April 2014
Release No. 90

The Commerce Commission has announced that it is currently assessing new information received concerning the banks involved in the interest rate swaps investigation.

Last December the Commission reported that it anticipated filing proceedings against ANZ, ASB and Westpac by the end of March. However, the Commission has been able to actively advance its investigation since then, including through using its new compulsory interview powers, which came into law just before Christmas. The Commission has used these powers to interview current and former bank staff.

This is a particularly complex case where different facts and circumstances apply to each of the three banks involved. This complexity along with the new information that has been obtained meant that the original March time-frame was no longer realistic.

The Commission now anticipates making a further announcement mid-year, once it has furthered discussions with each bank about the information it holds and any possible resolution of the Commission’s concerns. The Commission has entered into a ‘standstill agreement’ with each bank that means there will be no barrier to any proceedings brought by the Commission as a result of taking this extra time.

As this remains an active investigation with prospective court proceedings, the Commission will not be commenting further at this time.

On 17 December 2013, the Commerce Commission announced that it has advised three major New Zealand banks (ANZ, ASB and Westpac), that it intended to issue legal proceedings in March 2014 over their sales of interest rate swap contracts to rural customers.

Interest rate swaps are a financial derivative product that allows a borrower to manage the interest rate exposure on their borrowing. They were typically provided to large corporate and institutional customers, but from 2005 were offered by various banks to rural customers throughout New Zealand.

In August 2012 the Commission began enquiring into whether interest rate swaps were misleadingly marketed from 2005. More information about the interest rate swaps case can be found at -

© Scoop Media

Business Headlines | Sci-Tech Headlines


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news