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.
Borrowers hoping (and savers fearing) that this Thursday's OCR cut might push retail interest rates lower may be left hanging by banks who have taken their foot off the mortgage lending accelerator and are instead keener on term deposits.
Hello all after the release of the March quarter labour force figures on jobs and wages, which everyone is scrutinising for signs on how the economy is travelling and what the Reserve Bank might do next.
Good morning all
Good morning all.
For the convenience of email-avoiding subscribers and samplers, here's the email sent earlier on Friday morning, including news of David Cunliffe's circling of the wagons around his leadership and the Government's attempts to turn the screws on Cunliffe's letter to Donghua Liu.
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.
Veda Advantage has reported mortgage applications from Generation X and Y borrowers fell more than 13.5% in the March quarter from a year ago, while their applications for personal loans grew more than 12%.
The Reserve Bank has given more detail around its thinking on the interactions between monetary policy and its new macro-prudential tools, including indicating that the high LVR speed limit could be removed once interest rates have been tightened to 'more normal' levels . Deputy Governor Grant Spencer said the policy was having the same impact on inflation as 25-50 basis points of OCR hikes.