Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Q+A: Dr Alan Bollard and Cameron Bagrie interviewed by Tame

Q+A: Economists on slowing economy, Reserve Bank capital proposals

Former Reserve Bank Governor Dr Alan Bollard was asked about the Reserve Bank’s proposed new capital requirements on Q+A tonight:

“I can’t completely comment on that other than to say this is a really complex question. A lot depends on the different models that are being used by the Reserve Bank in all of this. There’s some significant suggestions put out by the Reserve Bank, they may be flying some kites in all of this, there may be arguments for increasing capital. I don’t think we had it that wrong and we did come through the financial crisis in pretty good conditions and sure, ultimately, putting up capital requirements does mean that lending becomes more expensive and you do see it happening through in the markets but I wouldn’t expect there to be a sudden impact one way or the other in all of this.”

Economist Cameron Bagrie says he sees the capital issue as an insurance policy:

“We want to make the banking sector more resilient, safer. I actually don’t have a problem with that. I’m not convinced 20 billion is the right number, maybe 10 to 15 is more appropriate – the issue then is who pays for it. And I guess the banking sector’s coming out – and I’d go so far to say they’re scaremongering – that’s actually saying that borrowers are going to wear the full cost. I think it’s going to be spread across savers - slightly lower savings rate, borrowers – slightly higher borrowing rates, and shareholders can expect to get a slightly lower return. Unfortunately I don’t think the shareholders or ANZ or some of the other banks share that view. “

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

Please find the transcript attached and the full interview here.

Q+A, 9:30pm Mondays on TVNZ 1 and one hour later on TVNZ 1 + 1.

Streamed live at www.tvnz.co.nz

Thanks to the support from NZ On Air.

Q+A is also on Facebook + Twitter + YouTube


© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On The US Opposition To Mortgage Interest Deductibility For Landlords


Should landlords be able to deduct the interest on the loans they take out to bankroll their property speculation? The US Senate Budget Committee and Bloomberg News don't think this is a good idea, for reasons set out below. Regardless, our coalition government has been burning through a ton of political capital by giving landlords a huge $2.9 billion tax break via interest deductibility, while still preaching the need for austerity to the disabled, and to everyone else...
More


 
 

Government: Concerns Conveyed To China Over Cyber Activity
Foreign Minister Winston Peters has confirmed New Zealand’s concerns about cyber activity have been conveyed directly to the Chinese Government. “The Prime Minister and Minister Collins have expressed concerns today about malicious cyber activity... More

ALSO:


Government: GDP Decline Reinforces Government’s Fiscal Plan

Declining GDP for the December quarter reinforces the importance of restoring fiscal discipline to public spending and driving more economic growth, Finance Minister Nicola Willis says... More

ALSO:


Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More


Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.