Parliament

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

 

RBNZ bank capital policy will make NZ poorer


“The Reserve Bank should heed the call of the New Zealand Bankers’ Association and abandon its flawed proposals to increase capital requirements for banks,” according to ACT Leader David Seymour.

“A report by former Treasury Secretary Dr Graham Scott on the proposals is damning. Dr Scott’s analysis suggests the policy will cost households and the economy $1.8 billion each year.

“These proposals would act as an handbrake on the New Zealand economy and lower our living standards at a time of growing economic uncertainty.

“The policy would reduce economic output by $2.7 billion a year – through higher interest rates and lower investment by firms – for a hypothetical benefit of $900 million. This is a conservative estimate – the costs could be much higher.

“The Reserve Bank is promoting a policy that would impose significantly higher costs than its benefits.

“Worse, the costs will be imposed unequally. Riskier borrowers, such as a farmers and small and medium-sized enterprises, will face a disproportionate increase in interest rates and a reduction in lending. By impacting particular sectors disproportionately, the impact of these proposals will be unfair.

“The irony of the Reserve Bank’s proposals is that by putting pressure on sectors such as farming, it risks putting people out of business, and contributing to the instability it is supposed to be fixing.

“Another unintended consequence of the policy is that it may force borrowers to rely on non-bank lenders. This risks creating a larger unregulated shadow banking industry, setting us up for a collapse reminiscent of the finance company collapses of a decade ago.

“According to Dr Scott, the Reserve Bank has not articulated what it believes is wrong with the status quo. Banks are already well-capitalised by international standards. The proposals are a solution looking for a problem. However, if they force businesses and farms under, they may well find the very problem they were seeking to solve.”

ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Ellen Rykers on The Dig: Community Conservation – The Solution To The Biodiversity Crisis?

There are backyard trapping networks doing their bit for Predator Free 2050, farmers planting native trees along their waterways, and iwi protecting whenua rāhui. There are 62 biodiversity sanctuaries across 56,000 hectares, with around two-thirds of them community-led. There are citizen scientists counting birds in their backyards and landowners conserving habitat in 3,500 Queen Elizabeth II National Trust covenants.

It’s increasingly clear that a government agency alone cannot combat the biodiversity crisis successfully. These grass-roots initiatives are a growing resource in the conservation toolbox. More>>

Closing This Weekend! Have Your Say On The Issues For NZ's New Biodiversity Strategy

Scoop and PEP invite you to help decide how we should protect and restore our biodiversity over the next 50 years using Scoop’s online engagement platform, HiveMind. HAVE YOUR SAY HERE>>

Biodiversity HiveMind Preliminary Progress Report
Open data report summarising preliminary findings of the Biodiversity HiveMind. Read Progress Report Here>>

 

PM In Japan: Jacinda Ardern’s Remarks Following Abe Summit

Today we discussed a wide range of topics. Broadly the themes were: a deeper, high-value trade and investment relationship, greater cooperation in the Pacific; and strengthening our security partnership. More>>

ALSO:

Replacing All But Chair: Twyford Appoints Five NZTA Board Members

Transport Minister Phil Twyford today announced the appointment of five new members to the NZ Transport Agency Board... There remain two vacancies on the NZTA Board which will be filled in due course. More>>

ALSO:

Climate Change: Adaptation And Risk Assessment Framework Released

“We are already experiencing the effects of a changing climate such as coastal inundation and increasingly frequent and severe droughts, floods, fires and storms. This framework is an acknowledgement that we must start adapting”, James Shaw said today. More>>

ALSO:

Ihumātao: Mana Whenua Reach Decision On Land

Māori King Tūheitia says mana whenua have finally reached consensus over what to do with Ihumātao - they want it back. More>>

ALSO:

PM To Japan, New York: Ardern To Meet Trump During UN Trip

“I’m looking forward to discussing a wide range of international and regional issues with President Trump, including our cooperation in the Pacific and the trade relationship between our countries." More>>

PM's Post-Cab: "A Way Forward"

At Monday's post-cabinet press conference, Prime Minister Jacinda Ardern announced a number of actions in response to the Labour Party's mishandling of sexual assault complaints. More>>

ALSO:

Gordon Campbell: On Allegations Of Left Wing Media Bias

“Left wing bias” accusations date back at least to the mid 1990s... The charge of left wing bias was ridiculous then, and is ridiculous now. More>>

Next Wave Of Reforms: Gun Registration And Licensing Changes Announced

“The Bill includes a register to track firearms and new offences and penalties that can be applied extraterritorially for illegal manufacture, trafficking, and for falsifying, removing, or altering markings – which are a new requirement under the Firearms Protocol.” More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels