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Bernard Hickey talks to BNZ CEO Andrew Thorburn

Bernard Hickey talks to BNZ CEO Andrew Thorburn

Bernard Hickey interviews BNZ CEO Andrew Thorburn about interest rates and bank profits in the wake of comments by both the Reserve Bank and the Finance and Expenditure Select Committee this week. Thorburn says funding costs for BNZ have risen because of the Credit Crunch, both for overseas funding and local term deposits. Hot competition for retail deposits has driven up rates in New Zealand in recent months. He says BNZ's profits and margins have also fallen and floating rate mortgages are funded from a wider pool of rates than just the Official Cash Rate.

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