Reserve Bank's cheap funding ends with $19.02b drawn down

The FLP provided banks with three-year money at whatever rate the OCR was at. (Image: Depositphotos)

Wed, 07 Dec 2022

The Reserve Bank of New Zealand’s cheap bank funding scheme at last expired on Tuesday after banks had accessed $19.02 billion of the about $28b that's been on offer since late 2020.When the central bank announced the funding-for-lending programme (FLP), it said it would both directly lower the funding costs of those taking part in it and indirectly lower the funding costs of non-participants by reducing the demand for retail deposits and wholesale funds.In a letter to non-banks, which had complained about not being able to access the...

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