Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Record bank profits show talk of interest rate hikes premature

24 January 2014

Record bank profits show talk of interest rate hikes premature

Talk by the big four Australian-owned banks of looming interest rate hikes needs to be tempered by new Reserve Bank profit data released this week showing that last year was the banks’ most profitable, the Green Party said today.

The Reserve Bank published the statutory profits of New Zealand’s major trading banks this week – data that allows the most consistent and reliable comparison of bank profits since 2002. The combined after-tax profits of ANZ, BNZ, ASB, and Westpac were up 10% from 2012 to a record $3.6 billion. Last year, Westpac was the only one of the big four banks not to post an all-time record profit.

“Our foreign-owned banks should not be talking up mortgage interest rates when they are making record profits,” said Green Party Co-leader Dr Russel Norman.

“Reserve Bank profit data released this week shows our foreign-owned banks have been making all-time record profits.

“The costs of business loans and mortgage payments could be lower if our banking sector wasn’t so obscenely profitable.

“Put more simply: record bank profits are being made at the expense of new jobs and incomes.

Dr Norman doesn’t believe an excessively profitable banking sector is the necessary price we have to pay for long-term stability in the industry.

“The stability of our banking sector is secured by careful regulation and oversight, not excessive profitability,” Dr Norman said.

“Lehman Brothers, Merrill Lynch, and Bear Stearns were all highly profitable in the years running up to their spectacular collapse.

“Excessive profits are do not represent a strong, secure banking sector; they represent the New Zealand public being ripped off.”

The Green Party has proposed a number of solutions to address the excessive profitability of our banking sector and the high degree of foreign ownership.

“One solution to the problem is to build up our New Zealand-owned banks, introducing greater competition, and stemming the flow of capital offshore,” Dr Norman said.

“New Zealand-owned banks make up only six percent of our banking sector.

“We can increase competition in our banking sector by strengthening Kiwibank and other New Zealand-owned banks and financial institutions such as credit unions.

“A strong Kiwibank is an integral part of a smart, green economy.

“The banking sector is the lifeblood of the New Zealand economy. It’s important we get it right so that we can all prosper, not just the big four foreign-owned banks.”

Further information

Reserve Bank profit data:

http://www.rbnz.govt.nz/statistics/tables/g1/

http://www.rbnz.govt.nz/statistics/tables/g2/

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell:
On The Inadequate Response To Sexual Violence Prevention

On combatting sexual violence, the government has finally begun to undo some of the problems that were of its own making. Early in March, ACC launched the Integrated Services for Sensitive Claims scheme – a package aimed at improving the attitudes of ACC staff towards sexual violence victims, and offering them more substantive support.

Hopefully, this will help to reverse the damage done with the insensitive, punitive ACC policy put in place by the incoming Key government in 2009, which in some parts of New Zealand, saw 90 per cent of sexual violence victims being turned away by ACC. More>>

 

PARLIAMENT TODAY:

"To Help Families Get Ahead": April 1 Changes Kick In

Prime Minister John Key says Paid Parental Leave, the parental tax credit, the minimum wage and Superannuation will increase, while average ACC levies will fall, and more people will be helped in to home ownership... More>>

ALSO:

Climate: Ministers Exclude Emissions From ‘Environment Reporting'

The National Party Government has today revealed that the national environmental report topics for this year will, incredibly, exclude New Zealand’s greenhouse gas emissions, the Green Party said today. More>>

ALSO:

No Retrial: Freedom At Last For Teina Pora

The Māori Party is relieved that the Privy Council has cleared the final legal hurdle for Teina Pora who was wrongfully convicted of murder and sent to prison for 22 years. More>>

ALSO:

Germanwings Crash: Privacy Act Supports Aviation Safeguards In New Zealand

Reports that German privacy laws may have contributed to the Germanwings air crash have prompted New Zealand’s Privacy Commissioner to reassure the public that the Privacy Act is no impediment to medical practitioners notifying appropriate authorities to a pilot’s health concerns. More>>

ALSO:

Treaty: Taranaki Iwi Ngāruahine Settles Treaty Claims For $67.5mln

The settlement includes a $13.5 million payment the government made in June 2013, as well as land in the Taranaki region. The settlement also includes four culturally significant sites, the Waipakari Reserve, Te Kohinga Reserve, Te Ngutu o te Manu and Te Poho o Taranaki. More>>

ALSO:

Gordon Campbell: On A Funeral In Asia, The Northland By-Election, And News Priorities

Supposedly, New Zealand’s destiny lies in Asia, and that was one of Foreign Minister Murray McCully’s rationales for his bungled reforms at MFAT. OK. So, if that’s the case why didn’t Prime Minister John Key attend the state funeral on Sunday of Singapore’s founding leader Lee Kuan Yew? More>>

ALSO:

Werewolf Satire: Not Flag-Waving; Flag-Drowning

The panel choosing the flag options has no visual artists at all. Now, I’ve kerned the odd ligature in my time and I know my recto from my French curve so I thought I’d offer a few suggestions before they get past their depth. More>>

ALSO:

IPCA Reports: Significant Problems In Police Custody

In releasing two reports today, the Independent Police Conduct Authority has highlighted a number of significant problems with the way in which Police deal with people who are detained in Police cells. More>>

ALSO:

Inspector-General of Intelligence and Security: Inquiry Into GCSB Pacific Allegations

The complaints follow recent public allegations about GCSB activities. The complaints, and these public allegations, raise wider questions regarding the collection, retention and sharing of communications data. More>>

ALSO:

TPPA Investment Leak: "NZ Surrender To US" On Corporates Suing Governments

Professor Jane Kelsey: ‘As anticipated, the deal gives foreign investors from the TPPA countries special rights, and the power to sue the government in private offshore tribunals for massive damages if new laws, or even court decisions, significantly affected their bottom line’. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news