RBNZ says offshore, wholesale funded non-bank financial institutions shouldn't be dragged into its non-bank deposit taker regulatory regime

RBNZ says offshore, wholesale funded non-bank financial institutions shouldn't be dragged into its non-bank deposit taker regulatory regime

By Gareth Vaughan

GE Capital, the country's biggest finance company, looks set to remain outside the Reserve Bank's prudential regulatory regime established to oversee major non-bank financial institutions.

The Reserve Bank has released a review of the prudential regime for non-bank deposit takers (NBDTs), which Finance Minister Bill English says the Government will consider over the next few months.

The review looked at the very definition of what an NBDT is. The NBDT rules are designed to cover finance companies, building societies and credit unions that borrow money from the public.But, in a consultation paper issued earlier this year, the Reserve Bank raised the possibility of changing the definition of an NBDT to ensure it better catches entities likely to raise systemic risks in the NBDT sector, including through lending as well as borrowing.

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No need to supervise an entity which charges 27.95% interest on outstanding cc balances, 24% on personal loans & has secured a near monopoly on "hire-purchase" in every department store in NZ. It's turnover globally is probably more or similar to/than NZ's GDP anyway.

I think G E was involved with mortgage lending under another name until the going got tough around the gfc and they scarpered.
 
Surely there must be a NZowned co that could offer better deals than this crowd.