*This article was published in our email for paying subscribers. See here for more details and how to subscribe.
2 Comments
Gee, who could have guessed?
Why does the bank regulator turn a blind eye to such extraordinary returns in a deflationary environment?
by Audaxes | 6th Mar 20, 7:03pm
Westpac also cut all its TD rates from 6 months to five years, all by -10 bps. These are now market lows for any bank.
There should laws to prohibit the banks gouging depositors, whose capital mainly underwrites the NZ banking system at their own risk.by MisterB | 6th Mar 20, 8:21pm
Not sure it's gouging mate... NZ has some of the HIGHEST TD rates in the world, thanks to lack of saving and love affair with debt.
EG ANZ AU 8 month special is 1.60%.by Audaxes | 6th Mar 20, 8:40pm
Documents released by the Reserve Bank under the Official Information Act show ANZ New Zealand, ASB, BNZ and Westpac NZ with an average annual RoE of 18.4%. That tops the 16.7% of their Australian parents, and is below just Canada's big four banks with an average of 20.3%. In contrast the average RoE across five NZ owned banks - Kiwibank, Heartland Bank, SBS Bank, The Co-operative Bank and TSB - comes it at just 8.8%.According to the Reserve Bank, the new capital requirements mean banks will need to contribute $12 of their shareholders' money for every $100 of lending up from $8 now, with depositors and creditors providing the rest.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.