Banks supporting economic growth

Media Release
7 May 2014

Banks supporting economic growth

KPMG’s Financial Institutions Performance Survey analysis for the quarter to December 2013 released today has found that New Zealand’s economic development and the banking industry’s strength go hand-in-hand.

“Our strong and stable banking system provides a great platform for economic growth. That growth is possible because banks are providing funding to businesses across a range of sectors,” said New Zealand Bankers’ Association chief executive Kirk Hope.

The strength of our banking industry has been recognised internationally. The World Economic Forum’s Global Competitiveness Report 2013-2014 rated New Zealand banks as the second most sound in the world after Canada. This is important because it helps our banks borrow money from overseas at good rates which can be passed on to New Zealand businesses and households.

The KPMG report also found the banks continued to face regulatory challenges.

“We need good regulation that’s developed in a coordinated and consultative way, is robust, well-targeted and enforced, and is fit for New Zealand conditions.

“We support quality regulation that is well-targeted and enforced. All regulation should achieve a clearly defined purpose without imposing unnecessary costs and unintended consequences on businesses and consumers.

“Banks make a significant contribution to New Zealand through direct investment and facilitating economic growth. Getting regulation right, and striking a balance between new rules and the need to support economic growth, is critical,” Hope said.

ENDS

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