What do the Banks need to do in New Zealand before actual regulation?
The Government’s announcement to protect people’s money in the bank is cold comfort to those who owe the banks mortgages.
The scandal of greed currently engulfing Hisco and the breaching of basic banking practises is secondary to the jaw dropping obesity of bank profits vacuumed out of NZ for our Australian Corporate Overlords who have this level of power because of their lack of competition oligarchy which allows them to price gouge New Zealanders.
Adrien Orr knows all to well that if the big Australian Banks (who have recently been outed in an enormous Australian inquiry into the industry’s culture and who were found to be acting like piranhas with the kind of lending ethics reserved for drug cartels) get hit, the first thing they will do without a care is strip their NZ rental franchises of everything to keep the Australian parent banks afloat.
If you think any of the big Australian Banks would look after us over them, you are day drinking and smoking meth.
By demanding the big Australian Banks hold enough cash for a looming economic shock, Orr is closing off an escape rout for the big Banks should the worst eventuate. They are responding with an enormous panic campaign warning NZ mortgage holders that they will ultimately pay for Orr’s meddling.
Grant Robertson’s promise however to make sure the Banking Oligarch’s perverse grip on predatory loans & price gouging fees will be more stable than ever is hardly cheery.
It’s not the banks screwing over those who have money with them that is the issue, it’s the banks screwing over Kiwis who borrow from them.
The Banks are maximising obscene profits because the big 4 dominate, the facade of competition is just that, a facade. Our under regulated banking sector is another perverse market failure just like the interconnected housing crisis is a market failure.
The time to upscale Kiwibank to be the Government’s bank client and creating state backed mortgages for first time home buyers as a counter weight to this domination by the Australian banks is now.
Re-invest NZs wealth into NZ, not offshore to a corrupt Australians banking industry.
If getting into business isn’t about making profit and doing well for yourself then these bullshit narratives have taken over the hordes. I don’t want to sound to doom and gloom but we are in for a massive jolt in July.
Waste a time changing the law when the interest has not been capped its the interest that makes it so hard to pay it back as it too high loan sharks should have got sorted under the last crooked government but as usual they showed they don’t care
@michelle, who would have though loan shark regulation aka maximum interest rates capped could have been so problematic for successive governments?
I’d have though no more than 20% over OCR would suffice for the greediest, but apparently that was too hard and poor loan sharks and finance need to maximise profit and have as much complexity as possible to bamboozle the poor out of their rights and keep them in unpayable debt?
“The Government’s announcement to protect people’s money in the bank is cold comfort to those who owe the banks mortgages.”
You do realise that most of the mortgages in New Zealand are backed against those very deposits? i.e. the deposits need to be “protected” or else the mortgages become “unbacked”. I appreciate you have drunk deeply from the pseudo-Keynesian (it isn’t Keynesian, if you actually have read Keynes’) social Kool-Aid well, where money is apparently in fact “free” and can be printed Ad infinitum, Zimbabwe style, so that everyone can have effectively free houses (in addition to the already established “free” healthcare, free primary/secondary education, free infrastructure etc) as only the government simply willed it so. Good luck with that theory.
The government needs to stop putting band aides on things the no smoking in cars ( with children) policy is a dog and has the potential to hurt those it is suppose to be helping. Salesa needs to fix this and stop being naive this is a bad policy its been rushed through and not thought out and the policy also needs to have other policies in place to assist it to work.
Seriously after all the revelations about ANZ, the IRD and SFO are not having a look but allowing effectively self certification reports from one of the biggest powers in NZ run by a chairman known as the smiling assassin.
Remember leaky building and Pike river when industry gets to self certify?
Remember how there is a financial crisis every decade caused by the financial industry greed and lack of controls?
Ok, then nothing has changed.
The State Advances provided home loans at rates well below the robber banks, that is until neoliberalise closed down the state facility in the 80s to let the private banks reap the bonanza right across the home, commercial and farming sectors.
Labour set up the economy in the thirties with many initiatives that were good for Kiwi.
Since then neoliberalism under NACT and Labour have whittled away the provisions for a fairer society that were set up under Labour
http://nzetc.victoria.ac.nz/tm/scholarly/tei-GovCour-t1-body-d5-d23.html
https://teara.govt.nz/en/1966/finance-public/page-9
Russel Norman appears to be the only recent politician who will talk about it.
The numerous benefits for Kiwis, business and Govt income, have all been lost by closing the state mortgage facility.
Given away to the robber barons. NZ is very much poorer because of this giving away of on ongoing state guaranteed loan institution.
We have been robbed many times over. Kiwis wake up.