Banks stay strong despite global economic uncertainty

28 April 2016

Banks stay strong despite global economic uncertainty

KPMG’s Financial Institutions Performance Survey (for the quarter to December 2015) released today has found that New Zealand’s banks remain resilient and that the local economy continues to be buoyant, despite uncertainty in the global economic environment.

The New Zealand Bankers’ Association (NZBA) says that banks continue to manage their businesses well, and that helps support New Zealand’s economic growth.

“A strong and resilient banking system helps underpin New Zealand’s economic growth and well-being. Banks contribute to that growth by providing financial services to New Zealanders and businesses across a range of sectors,” said New Zealand Bankers’ Association acting chief executive Antony Buick-Constable. “The industry’s strength also enables our banks to provide continued support to the dairy sector through current challenges.”

The KPMG report showed that competition remains intense across the banking industry.

“Our banks are highly competitive and are managing their operating costs effectively. Customers currently benefit from historically low interest rates,” said Buick-Constable.

The report also found that banks continued to face regulatory challenges.

“New Zealand has strong regulatory oversight, and our banking sector is committed to working constructively with government and regulators to help ensure the best outcomes can be achieved. As an industry, we are very focused on playing our part toward maintaining a strong and stable banking environment,” added Buick-Constable.

ENDS

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