Hopes a Reserve Bank move will translate to better prices for borrowers might be overly optimistic. 

It is changing the mix of capital banks are required to hold, aiming to reduce funding costs and freeing up around $5 billion in equity across the sector.  

It’s also targeting closing the gap between bigger and smaller banks, making the market more competitive. 

Financial Markets and Banking Expert Andrew Body told Heather du Plessis-Allan that the change might result in a couple more chicken dinners for your average borrower, but nothing substantial.  

He says the big deal here is competition, which will require political leadership like we’ve seen in housing, education, and health to solve. 

LISTEN ABOVE 

Hopes a Reserve Bank move will translate to better prices for borrowers might be overly optimistic.&nbsp;
It is changing the mix of capital banks are required to hold, aiming to reduce funding costs and freeing up around $5 billion in equity across the sector. &nbsp;
It’s also targeting closing the gap between bigger and smaller banks, making the market more competitive.&nbsp;
Financial Markets and Banking Expert Andrew Body told Heather du Plessis-Allan that the change might result in a couple more chicken dinners for your average borrower, but nothing substantial. &nbsp;
He says the big deal here is competition, which will require political leadership like we’ve seen in housing, education, and health to solve.&nbsp;
LISTEN ABOVE&nbsp;

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Open your mind to the world with New Zealand’s number one breakfast radio show. Without question, as New Zealand’s number one talk host, Mike Hosking sets the day’s agenda. The sharpest voice and mind in the business, Mike drives strong opinion, delivers the best talent, and always leaves you wanting more. The Mike Hosking Breakfast always cuts through and delivers the best daily on Newstalk ZB.

Open your mind to the world with New Zealand’s number one breakfast radio show.

Without question, as New Zealand’s number one talk host, Mike Hosking sets the day’s agenda.

The sharpest voice and mind in the business, Mike drives strong opinion,...

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Andrew Body: Financial Markets and Banking Expert on the Reserve Bank's changes to banks' capital holding requirements

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/2819bde8-a8c7-4038-8039-b3b60148a9ab/transcript

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