Here comes the 4 Aussie Bank Gimp
Here we go, BRING OUT THE GIMP…
Reserve Bank announces review of bank capital requirements
The Reserve Bank is reassessing how much capital banks need to hold in reserve amid criticism its policy is too tough and costly.
Board chair Neil Quigley told the Finance and Expenditure Committee inquiry into banking that an evidence-based review of capital requirements will be undertaken by international experts with a report expected by the end of this year.
He said the review will take time, and cannot be rushed.
“We cannot just decide next week we’re going to do something different,” he said, adding the current requirements took two years to set.
Finance Minister Nicola Willis said higher capital requirements increased the cost of borrowing.
“It’s important that the Reserve Bank’s prudential regime preserves the stability of our financial system, while taking care not to not impose excessive costs in the process,” she said.
“I want to see settings that preserve financial stability while encouraging investment, job creation and income growth.”
…The real question now Adrian Orr has left is will the Big Australian Banks (who were angry at his demands for their capital levels) get a stooge who will lower their capital requirements.
Orr was hated by the 4 Big Australian Banks because he was the one demanding they hold high enough capital levels to look after New Zealanders because Orr knew in his heart of hearts that if a serious economic shock hit Australia or NZ that the 4 Big Aussie Banks would immediately cut our throat to protect their own.
No Kiwi can be stupid enough to not expect the 4 Big Aussie Banks who have robbed us blind to cut our throats if they needed to.
That was what Orr was protecting us from, he has been forced out and now we wait to see if the 4 Big Aussie Banks get their stooge.
Under this Government it is impossible to see that they won’t.
Here’s the risk.
Free Market Nicola will decide the Banks can have way less capital just as Trump primes the economy for global collapse, Orr’s worst fears will be realised and as Trump’s global realignment hits us, the Aussie Banks will gut us and run.
I don’t think we will wait long to find out.
Increasingly having independent opinion in a mainstream media environment which mostly echo one another has become more important than ever, so if you value having an independent voice – please donate here.
Don’t forget that the RBNZ will continue to jealously guard its statutory independence against even the slightest suggestion of political interference.
So it may not be that easy. . .
Yeah that’s why it’s going to take an international panel of experts two years to make an evidence based decision to, “do what Nicola said”.
Sorry Henry, National already has control by forcing out Orr we are now seeing their stooge Quigly as the front person.
Time will show that Orr was the one who would staunchly defend the Reserve Bank independence.
Let’s not forget that Quigly was appointed by Bill English as were 5 of the other 7 members of the board. They will bend over to satisfy Willis and Seymour while protecting the retail banks and big business.
Yes, Quigley is nationals yes man he was also involved in the Waikato University debacle that recruited Joyces’ company so they could get a medical school. He will do what nicola tells him to make them look good so much for independence.
There is still a bit of money sticking in the corners so we have to send the cleaners in to wipe over an antu-surfactant so that none will stick to the sides when the giant vacuum cleaner from Oz is turned on. And nice clean bank vaults will be okay for storing some other expensive matter, and we have an idea of what we might consider.
Another piece of the economic destruction of NZ by National .Let’s collapse the banks and sell the carcass of the country to the lowest bidder .
Got to get that property ponzi going again. All obstacles standing in the way must be eliminated. What the donors demand the donors get.
1. Landlord/property “investor” tax perks reinstated, brightline eliminated. Tick
2. Gut the developer/landlord competition, Kainga Ora. Tick
3. Bring back overseas speculators via millionaires visa. Tick
4. Fast track developments in dodgy areas. Ticking
5. Loosen bank lending safeguards. Ticking.
6. Turbo boost overseas student numbers and inward migration (high demand for rentals) via FTA with India. Ticking.