Former Finance Minister Bill English has described the influence of Australia's big four banks as more pervasive in New Zealand than that of China.
Kerry McDonald, a former chair of the BNZ and former National Australia Bank director, argues the current system designed to protect depositors in New Zealand’s big four banks is fundamentally flawed. He cites weak local governance by both the banks' boards and the Reserve Bank, and an unfair system that penalises local savers in any crisis. Like the IMF, McDonald is calling for tougher Reserve Bank regulation and reform of protections for savers.
Good morning all.
For the convenience of email subscribers, here's my weekend column, in which I argue EFTPOS is a national champion that saves NZ Inc hundreds of millions of dollars a year and should not be surrendered in the shift to contactless payments and mobile wallets.
Reserve Bank Governor Graeme Wheeler has presented Statistics NZ with the central bank and financial regulator's wish list of new statistics it wants to see, including a monthly inflation measure and quarterly national income figures.
Solid Energy has signalled that unless coal prices improve it may have to cut costs again and may not be able to repay debt as fast as it had previously forecast to its bankers.
Solid Energy is conducting a feasibility study for a limited restart of mining at its Spring Creek mine on the West Coast, which had employed 220 staff until its shock mothballing in October 2012.
Todd McClay delayed plans to amend Child Support rules for a year after IRD said it couldn't handle the complex changes in time, retiring Air NZ deputy CEO Norm Thompson was appointed to the board of Tourism NZ, Tariana Turia announced plans to introduce plain packaging legislation next year, Steven Joyce announced changes at Callaghan Innovation and Craig Foss flagged new regulations for the Financial Markets Conduct Act.
A campaign led by farm debt mediator Janette Walker and supported by Labour Primary Industries spokesman Damien O'Connor for the Commerce Commission to take legal action against big banks over allegations of mis-selling of interest rate swaps contracts has finally borne fruit. They now hope the banks and farmers can agree settlements as happened in similar cases in Britain.
BNZ has confirmed it has cancelled around 150 pre-approvals for high LVR mortgages, joining ASB and Westpac in cancelling either all (ASB) or some (Westpac) of its pre-approvals. ANZ is now the only major bank not to cancel pre-approvals.