Banks Slapped With Wet Bus Ticket By FMA and Reserve Bank
The recommendations of the report from the Financial Markets Authority and Reserve Bank into the conduct and culture of 11 New Zealand banks are no more than a slap across the wrist with a wet bus ticket.
The report’s statement that “the regulators identified significant weaknesses in the governance and management of conduct risks” is simply window dressing to make it look like there was an inquiry of some substance, when there was not.
The recommendations of the review should be seen as more of a self protection exercise for the reviewers given that it was carried out by the regulators of the banks, who in Australia were shown by the Royal Commission to be just as culpable as the banks themselves.
Why did the report not deal with how the ANZ in New Zealand was able to extract $2 billion in profit out of the pockets of 4.8 million Kiwis?
That’s equivalent to the population of Sydney, yet despite all the shenanigans the banks got up to in Australia, it only managed to make $6 billion out of the whole of Australia?
Why have the banks got a strangle hold on our money supply, creating 98 percent of it, when the Reserve Bank has the ability to create some and enable government investment into health, education, housing, and infrastructure projects.
The same could be done to provide low interest loans for first home buyers.
This would grow the economy, reduce debt, and save taxpayers and first home buyers enormous sums of interest.
How is it that the banks charge Kiwi home buyers as much as 5.9 percent interest on money they don’t have until it is created on their computer keyboards.
The loan fees and interest are the major contributors to the massive profits the banks are extracting out of the New Zealand economy and shipping off to their overseas owners, depleting our economy of much needed capital.
The idea that banks lend out money people deposit with them is a myth, a fact confirmed by the former governors of both the Bank of England and the Bank of Canada.
The report is a whitewash claiming all is well, and that despite a few minor misdemeanours, we can have confidence in our banking sector.
They should have asked the hard questions.