NZ Banks Seen As Stable and Safe
March 1, 2013 New Zealand Finance
New Zealand banks have received a sparkling review, with suggestions that local financial institutions have contributed billions to the national economy and tax revenues.
In a new press release issued on February 27th the New Zealand Bankers’ Association claimed that the country’s banks are among the safest, most stable and strongest in the world.
The statement was based on the result of the latest Financial Institutions Performance Survey by KPMG, which said that “…our banks are among the best funded and regulated in the world, and fiercely competitive”.
According to the Association, the New Zealand banking sector has not seen a significant change in the net interest margins over the course of 2012, and there is now less activity on the deposit market as the major banks of the country have now met their core funding ratio requirements.
The new Zealand banking sector is now facing an increase in overall compliance costs, as all of the national financial institutions prepare to implement raised compliance requirements, including new rules for fighting money laundering, the financial stability requirements imposed by the new Besel III capital rules, and the regulations mandated by the Foreign Account Tax Compliance Act launched by the USA.
The net economic benefit of the banking sector in New Zealand is estimated to be approximately NZD 4.7 billion in 2012, with an additional NZD 1.3 billion in direct tax payments.
Photo by Canadian Pacific