Westpac says RBNZ capital proposals would add $6,000 p.a. to an Auckland mortgage

Thu, 23 May 2019

By Jenny Ruth May 24 (BusinessDesk) - Westpac says the Reserve Bank’s bank capital proposals will mean homeowners with an average mortgage in Auckland will be paying about $6,000 a year more in interest. The Australian-owned bank says the central bank has greatly underestimated the cost of its proposal to near double minimum tier 1 capital from 8.5 percent currently to 16 percent for the big four banks and 15 percent for the smaller banks. The RBNZ has said its proposals would add between 20 and 40 basis points to the cost of a home lo...

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