FINANCIAL - MSC NewsWire

FMA releases KiwiSaver Tracker

Nov 21, 2017 - The FMA has today published KiwiSaver data in an interactive format to prompt discussion, engagement and debate on the relationship between investment risk, returns and fees. The FMA KiwiSaver Tracker uses the information KiwiSaver providers give investors through their quarterly fund updates and via the Companies Office’s Disclose Register. These updates are a legal requirement and the Tracker will automatically incorporate the new information every three months. The Tracker is part of the FMA’s ongoing focus on using disclosure to drive good conduct by providers and informed investor decision-making. The tracker complements other existing independent sources…

Reserve Bank consults on new mortgage bond collateral standard

17 Nov 2017 - The Reserve Bank today published a consultation paper proposing an enhanced mortgage bond standard aimed at supporting confidence and liquidity in the financial system. This follows a review of domestic and international mortgage bond collateral standards. When the Reserve Bank lends to banks and other counterparties it does so against ‘eligible collateral’ (usually lower risk financial assets). Mortgage Bonds are a key form of eligible collateral in many countries with the Reserve Bank first accepting them in response to the global financial crisis when its lending to the banking system increased significantly. In New Zealand mortgage…

Westpac capital requirements increased after breaching regulatory obligations

15 Nov 2017 - Westpac New Zealand Limited (Westpac) has had its minimum regulatory capital requirements increased after it failed to comply with regulatory obligations relating to its status as an internal models bank. Internal models banks are accredited by the Reserve Bank to use approved risk models to calculate how much regulatory capital they need to hold. Westpac used a number of models that had not been approved by the Reserve Bank, and materially failed to meet requirements around model governance, processes and documentation. “This is very disappointing. Operating as an internal models bank is a privilege that requires…

Official Cash Rate unchanged at 1.75 percent

9 Nov 2017 - Statement by Reserve Bank Governor Grant Spencer: The Reserve Bank today left the Official Cash Rate (OCR) unchanged at 1.75 percent. Global economic growth continues to improve, although inflation and wage outcomes remain subdued. Commodity prices are relatively stable. Bond yields and credit spreads remain low and equity prices are near record levels. Monetary policy remains easy in the advanced economies but is gradually becoming less stimulatory. The exchange rate has eased since the August Statement and, if sustained, will increase tradables inflation and promote more balanced growth. GDP in the June quarter grew broadly in…

Renewed Policy Targets Agreement signed

7 Nov - Finance Minister Grant Robertson and Reserve Bank Governor Grant Spencer today signed an unchanged Policy Targets Agreement (PTA), which sets out specific targets for maintaining price stability. The Minister also released today the Terms of Reference for a Review of the Reserve Bank Act. The Policy Targets Agreement, effective immediately, is the same as that signed by Mr Spencer and the previous Finance Minister Steven Joyce, which has been in effect since Mr Spencer’s six-month term as Governor began on 27 September. The PTA requires the Reserve Bank to keep future CPI inflation outcomes between 1 per…

China Construction Bank joins NZ Bankers Association

The New Zealand Bankers Association announced today that the China Construction Bank (New Zealand) Ltd has joined the association, bringing the total number of member banks to 17. New Zealand Bankers Association chief executive Karen Scott-Howman says: We are delighted to welcome CCBNZ to the Bankers Association. China is one of New Zealands most important trading partners. Having Chinese banks here helps support this trading relationship. CCBNZs participation in the New Zealand banking industry promotes further competition and diversity in our banking sector, says Scott-Howman. China Construction Bank (New Zealand) chief executive Jun Qi says: CCB is one of the…

The First FinTech To Go Global – The PayPal Story

31 Oct: The word “FinTech” (financial technology) has been thrown around as of late by hundreds, if not thousands, of startups looking to capitalize on the e-commerce coverage that the growing industry has been receiving. A FinTech, according to definition, is a company that uses new technology in the financial world. Originally, it was a term used to define the back end technology of established financial institutions. Today, the term is used much more broadly and includes new financial technologies, such as Bitcoin, various e-wallet apps and capital marketplaces like Kickstarter. These companies attempt to disrupt the established financial sector…

Strong economy delivers $4.1 billion surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. “The 2016/17 Crown accounts are a direct demonstration of the hard work of New Zealanders since the Global Financial Crisis and the benefit of a strong economic plan that is delivering consistent growth,” Mr Joyce says. Core Crown tax revenue was $75.6 billion for the 2016/17 year, up 7.4 per cent from the previous year with all major…

NZ economy and financial system sound

New Zealand’s economy and financial system remain on a sound footing despite continuing challenges in the global environment, according to the Reserve Bank’s Annual Report 2016-17 released today. The 2016-17 financial year saw a pickup in economic activity in most major economies, although inflation and wage pressures remained subdued Supported by improving domestic economic conditions, the New Zealand banking system remains sound and well capitalised. “As a small, open economy, developments beyond our shores have a large influence on New Zealand’s economic outcomes,” former Governor Graeme Wheeler says in the Report. Mr Wheeler finished his term as Governor on 26…

Reserve Bank policy a key driver in economic performance

The Reserve Bank’s monetary policy has been an important driver in the last five years behind above-trend growth in the economy and employment, Reserve Bank Governor Graeme Wheeler said today in a speech. Speaking to the Northern Club in Auckland, Mr Wheeler said that the New Zealand economy has generally performed well in the last five years. “It’s been a remarkable five years, especially with the challenges thrown up by the global economy and an over-heated domestic housing market. On the international front we’ve seen increasing use of unconventional monetary policies, sluggish international trade, sharp swings in commodity prices, a…

RBNZ appoints Assistant Governor, Head of Operations

The Reserve Bank has appointed Sean Mills as Assistant Governor and Head of Operations. Mr Mills will take up his appointment on 29 November 2017. He is currently Chief Information Officer at the Department of Corrections. As Assistant Governor and Head of Operations, Mr Mills will replace Deputy Governor Geoff Bascand, who will take up the Head of Financial Stability role on 27 September, when Grant Spencer becomes Acting Governor for six months. “Mr Mills is an experienced senior leader and business governance chair, has worked on a number of cross-government strategic initiatives, and has over 15 years’ prior experience…

Slightly softer growth expected in PREFU

A slightly softer growth forecast is the main feature of largely unchanged Pre-election Fiscal Update compared to the Budget forecasts three months ago, Finance Minister Steven Joyce says. “The softer growth New Zealand has experienced in the six months to March flows through to a lower starting point in the 2017/2018 year,” Mr Joyce says. “The net effect is that growth is slightly lower through the forecast period – averaging 3.0 per cent over the next four years rather than the 3.1 per cent predicted in the Budget. “The other notable change is that Treasury expects the labour market to…