KPMG says bank capital proposals will wreck havoc on dairy farmers

Thu, 18 Jul 2019

By Jenny Ruth July 19 (BusinessDesk) - KPMG says the Reserve Bank’s bank capital proposals will lead to less bank lending to farmers and at significantly higher interest rates on the loans they’re prepared to provide. The accounting firm says the proposals in their current form will mean the five banks who currently lend about $62 billion to the agricultural sector will have to hold between twice and three times the amount of capital for agricultural lending as for residential mortgages. Two-thirds of that lending is to dairy farmers....

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