Pressure may be mounting for a broad inquiry into the banking industry following recent incidents involving the biggest trading bank in NZ.
Agriculture Minister Damien O’Connor said this week banks are “bullies” (according to a Radio NZ report). It’s a sentiment shared by many New Zealanders.
This sentiment has been rekindled by the departure of ANZ’s CEO David Hisco who, it had been found, passed off charges for chauffeur-driven cars and the cost of storing his wine collection as business rather than personal expenses.
ANZ suffered a couple of regulatory blows last month with the Reserve Bank forcing it to hold more capital against housing and farm lending from June 30 and to use the standardised model for calculating its operational risk capital (ORC) rather than its own internal model. That’s because it had been using a modified internal model for calculating ORC since December 2014 without first getting RBNZ approval. Continue reading “Fallout from the Hisco affair is bound to spread to RBNZ moves to regulate bank capital”