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Revenue growth is likely to stay under pressure for up to two years at New Zealand's "regional" banks and building societies, Fitch Ratings says, due to stiff competition in the residential mortgage market, although lower funding costs could offset declining net interest income.
Big banks such as ASB and BNZ are aggressively targeting residential mortgage lenders who don't require high loan-to-value ratio (LVR) loans with offers of TVs or cash for fuel groceries, or appliances with their loans as the Reserve Bank's restrictions on high LVR lending bite.
The report on what Fitch describes as New Zealand's regional financial institutions covers four entities Fitch rates in Kiwibank, SBS Bank, Nelson Building Society and Wairarapa Building Society, plus three it doesn't rate being TSB Bank, the Co-operative Bank, and Heartland Bank.
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1 Comments
Fitch Ratings says, due to stiff competition in the residential mortgage market, although lower funding costs could offset declining net interest income.
Dontcha just love subsidising these bludger banks at the behest of the RBNZ.
Who works for whom? - it's past time RBNZ funding became a liability for the private sector, but regulated by a citizens' appointed regulatory authority.
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