Banks well-positioned despite continuing uncertainty

27 July 2016

Banks well-positioned despite continuing uncertainty

KPMG’s Financial Institutions Performance Survey for the quarter ending March 2016 has found that banks’ strong performance positions them well in an environment of continuing global and domestic uncertainty.

“Our banks continue to be among the best capitalised in the world. This means we’re in good shape in the face of current pressures,” said Karen Scott-Howman, chief executive of the New Zealand Bankers’ Association.

“The KPMG report demonstrates that banks are taking a prudent and proactive approach to operating their businesses and managing risk in uncertain times,” Scott-Howman said.

“A strong banking sector underpins New Zealand’s economic wellbeing. Strong banks provide a platform for economic growth, both for our customers and for New Zealand Inc.”

The KPMG report also notes current regulatory initiatives, including the proposed introduction by the Reserve Bank of New Zealand of a 40 per cent loan-to-value (LVR) ratio for investors.

“Members of the New Zealand Bankers Association have given an assurance to the Reserve Bank that they will honour the spirit of the new LVR restrictions ahead of any formal implementation requirement.

“The banking sector is committed to working collaboratively with government and regulators to ensure that together we can achieve the best outcomes for New Zealand,” Scott-Howman added.

ENDS

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