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Bill to align financial markets passes reading

Commerce Minister Kris Faafoi says New Zealand's continued access to key global financial markets has been assured by legislation aligning New Zealand with other regulations reaching its first milestone.

Friday, March 8th 2019, 10:21AM

Kris Faafoi

"The Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Bill passed its first reading last night. The amendments in this Bill will align us with international regulations made to strengthen the resilience of global financial markets and reduce risk.”

He said the bill was critical to ensure financial institutions that relied on derivatives could continue to transact seamlessly in international markets.

“Financial institutions like the Super Fund, ACC and banks use derivatives to hedge against factors such as currency risks when they make investments or raise money offshore.

“Being able to access the global financial markets ensures these entities can invest and raise funds cheaply and efficiently. This ultimately benefits New Zealand consumers and businesses, who are the end-users of these entities.”

He said, while the changes were complex and technical, they not only brought New Zealand into line with international best practice but also avoided potentially substantial damage to the economy.

“Without these amendments, New Zealand’s financial institutions could lose access to offshore funding markets because they don’t comply with new requirements that have resulted from overseas reforms.

“Not having access to these markets could also see an increase in the cost of raising capital, leading to higher interest rates. This would affect all New Zealanders, directly or indirectly, potentially costing millions of dollars to the economy. It could also have a negative impact on financial stability, if it meant New Zealand entities were raising funds from riskier sources or were no longer able to hedge certain risks.

“By progressing this legislation, the Government is future-proofing a significant part of our financial markets for the benefit of all New Zealanders.”

The bill is now referred to the Finance and Expenditure select committee with a report back to the House by July 22.

Tags: Kris Faafoi

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AIA - Back My Build 5.44 - - -
AIA - Go Home Loans 7.99 5.99 5.69 5.69
ANZ 7.89 6.59 6.29 6.29
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BNZ - Mortgage One 7.94 - - -
BNZ - Rapid Repay 7.94 - - -
BNZ - Std 7.94 5.99 5.69 5.69
BNZ - TotalMoney 7.94 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.79 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 7.65 5.99 5.75 5.69
Co-operative Bank - Standard 7.65 6.49 6.25 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 6.40 6.10 -
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Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.00 6.50 -
ICBC 7.49 5.99 5.65 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.75 6.89 6.59 6.49
Kiwibank - Offset 8.25 - - -
Kiwibank Special 7.75 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 8.44 ▼6.39 ▼6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
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SBS Bank Special - ▼6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 5.44 ▼5.15 - -
SBS FirstHome Combo - - - -
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TSB Bank 8.69 6.79 6.49 6.49
TSB Special 7.89 5.99 5.69 5.69
Unity ▼7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
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Westpac 8.39 6.89 6.39 6.39
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Westpac Special - 6.29 5.79 5.79
Median 7.99 6.17 5.79 5.69

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