PHOTO: PETER MEECHAM Westpac New Zealand chief executive David McLean. The bank has published “scenarios” which suggest the Reserve Bank’s plan to force banks to hold more capital could add more than $6000 a year in repayment costs to the “average home loan in Auckland”.
A plan to require banks to hold more cash to help withstand future financial shocks could add $6000 a year to the average Auckland mortgage, Westpac is claiming.
On Friday morning the bank published its submission on the Reserve Bank’s capital consultation which suggested borrowers would be hit hard by the plan.
The central bank is proposing that banks should be required to hold more capital on the balance sheet in to ensure the lenders can withstand a one in 200 year financial crisis.
READ MORE VIA STUFF