Articles tagged Banks

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.

The headlines around the International Monetary Fund's two flagship reports on New Zealand's economy and its financial systems were benign enough. But its recommendations to reduce property tax breaks and toughen financial regulation pose serious challenges to the status quo for New Zealand's banks and the Government's approach to dealing with the risks of an over-blown housing market. Bernard Hickey sifts through the recommendations and finds the IMF wants some big changes to make our banking system safe from a potential housing slump caused by renewed turmoil on global financial markets.

Waterfront properties are still marketed as desirable but rising sea-levels may render thousands of them uninsurable, sending their values into freefall and resulting in fiscal risks for banks and the government, writes Lynn Grieveson.