Subscribe today - find out more
Why you should consider BusinessDesk
Opinion

Super-cheap money. Are borrowers or bank shareholders winning?

Cameron Bagrie
Mon, 03 May 2021

Term deposits have now fallen to 40% of total deposits as bank deposit rates have fallen.
Cameron Bagrie
Mon, 03 May 2021
Our banks are awash with cheap cash.Even with some upward movement recently in longer term wholesale interest rates, our banks largely fund their activity from short-term money, which remains as cheap as ever.Money is being hoarded in liquid accounts as opposed to locked up in term deposits.With many banks due to release their half-year results in the coming weeks, we will get a chance to see to what extent that cheap funding has been passed on to borrowers.Lending growth is up around $40 billion in the past year, but deposits grew more than $5...

Use the information you’ve already given Google to create your subscription.

Not convinced yet?

Subscribe to our Daily News Update free newsletter.

Opinion
The hermit trading nation
Ian McCrae | Sat, 25 Sep 2021

The rest of the world is opening up, and NZ businesses' international customers are getting frustrated. 

Law & Regulation
Deloitte: Why consultants are moving into advertising
Daniel Dunkley | Sat, 25 Sep 2021

The glamorous advertising world looks set for a shake-up.

On the Money
On the Money: Judith Collins, Ardie Savea, NZ's most accessible business leaders, and more
Rebecca Stevenson | Sat, 25 Sep 2021

OTM this week: the parallels between Judith Collins' business and political careers, who are the most approachable business leaders in NZ, which company is holding fire to get personal? And more.

Sponsored
Demand driven change an easier route to carbon reduction

Taking a demand-driven approach to carbon reduction will naturally bring us into line with government targets.

Sponsored
Kiwi security technology leading the world

Businesses must take advantage of our home-grown, world-leading, internationally-valued cyber defence systems to manage risk.