Banks must do the right thing
At the same time we have an important role to ensure financial institutions remain sound and operate with appropriate conduct.
The FMA has been working to ensure firms understand its expectations about putting customers’ interests first. For example, KiwiSaver investors are experiencing significant volatility in their balances and the FMA wants to ensure New Zealanders remain confident that the system for their retirement savings is sound.
The Commerce Commission published new guidance to help lenders of consumer credit understand how to lend responsibly in a Covid-19 environment and help borrowers facing financial difficulties understand options.
Where businesses need to collaborate to provide essential goods and services, including in the financial services sector, the Commission is also providing guidance on the scope for legitimate collaboration.
Many of the measures to support the economy and the financial system are through banks, which know their customers, and are best placed to see them through these unprecedented times.
This is the time for banks to repay the faith that financial regulators and the Government have placed in their hands. We look forward to them delivering lending and other affordable long-term customerfocused solutions to ensure New Zealand returns to a vibrant and dynamic business community. As much as this crisis is challenging, it does present huge opportunities for New Zealand to be global leaders.
To do this, we all need to keep working together, and optimise the opportunities for everyone to think courageously and innovatively about inclusion and productivity.
Behaving responsibly means being compassionate as well and ensuring people are not taken advantage of.
Regulators remain vigilant against improper conduct or unfair practices at a time when some may find themselves under financial stress and in need of support.
Now is the most important time to all work together. The whole financial system must play its part and show it is keeping credit flowing to households and ensure it is treating customers fairly in all interactions. New Zealanders should expect nothing less. Reserve Bank Governor Adrian Orr and Financial Markets Authority CEO Rob Everett are the co-chairs of the Council of Financial Regulators.