Monthly Archives September 2008
September 23, 2008 New Zealand Taxation
The New Zealand Stock Exchange (NZX) have issued a statement saying that they will not be following the Australian Stock Exchange(ASX) in banning short selling of stock.
The Australian Securities and Investments Commission (ASIC) banned all forms of short selling on the 19th of September, widening the previous ban on “naked” short selling to include “covered” short selling also. While this action was a response to the turmoil caused on the ASX by naked short selling, the NZX does not see enough short selling activity to warrant such a ban at this point.
Geoff Brown, the NZX markets development manager, was quoted as saying that New Zealand firms are already required to disclose any short sales and that in the eyes of the NZX, short selling was a legitimate activity...Read More
September 22, 2008 New Zealand Finance
The law regulating what type of mortgages can be included in Kiwisaver mortgage diversions has been expanded, according to a government media statement issued on the 15th of September.
According to the released statements, the mortgage diversion scheme will now allow the diversion of Kiwisaver contributions to flexible home loans. Although there is a condition under which lenders are not allowed to automatically lend the amount of the contributions back to the individual.
Previous to this, individuals were able to divert half their Kiwisaver contribution to their home loan, as long as it was a table home loan. It was feared that if the system was otherwise, individuals could borrow the amount of their Kiwisaver diversion again, from their home loan, defeating the point...Read More
September 21, 2008 New Zealand Finance
The Reserve Bank moved to ease liquidity on the New Zealand financial system
While Governor Alan Bollard of the Reserve Bank said that there is no immediate problem in the New Zealand financial system, the Reserve Bank stands ready to support its liquidity if the need arises. He also said that he saw no need for New Zealand to follow other major financial institutions around the world and inject large amounts of capitals into the market.
In suit with his statement, Governor Alan Bollard went onto say that the Reserve Bank is expanding the range of securities it will accept from banks for short-term it provides them. In order to ease short term pressure on New Zealand financial institutions, the Reserve Bank will now accept longer term securities of up to six months.Read More
The Bank of Baroda (BOB) is opening in New Zealand.
India’s third largest bank, the Bank of Baroda, has announced that they will establish a commercial banking wing in New Zealand, with the initial branch being penned for Auckland. It is understood that the bank aims to function as a subsidiary company. Governance will be held by a mix of both local and overseas directors and that a senior executive has already been appointed to head the Auckland branch.
The now retired chairman and director of the Bank of Baroda, Dr Anil Kumar Khandelwal, said in an interview that the expansion into New Zealand was part of the bank’s “Look East Policy”, which sees it expanding and interacting more with other ASEAN nations...Read More