RBNZ sees slower credit growth as lenders compete for local funding

Fri, 12 May 2017

By Paul McBeth May 12 (BusinessDesk) - The Reserve Bank expects credit growth to slow as banks fight more aggressively for deposits to fund their expanding loan books. Central bank figures show annual home loans grew at an annual pace of 8.7 percent in March, slowing from a pace 9.1 percent in December, while business lending growth slowed by 0.4 of a percentage point to 7.1 percent and the pace of agri lending growth shrank to 2.7 percent from 3.9 percent. Banks have been complaining about the rising cost of funding in recent months...

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