Blog

2012-01-25T13:05:00.001-08:00

OCR Unchanged 2.5 percent

2012-01-25T12:57:00.000-08:00

NEWS RELEASE
Date 26 January 2012

OCR unchanged at 2.5 percent

The Reserve Bank today left the Official Cash Rate (OCR) unchanged at 2.5 percent.

Reserve Bank Governor Alan Bollard said: “Since the time of the December Statement, financial market sentiment has improved slightly, with increased liquidity in European financial markets. However, the global economy remains fragile and risks to the outlook remain.

“World prices for New Zealand’s export commodities have remained elevated but the recent appreciation of the New Zealand dollar is reducing exporters’ returns. The European debt crisis has also increased the cost of international funding, which will likely pressure funding costs for New Zealand banks over the coming year.

“In the domestic economy we continue to see modest growth. Over recent months there have been signs of a limited recovery in household spending and the housing market. Further ahead, repairs and reconstruction in Canterbury will also provide a significant boost for an extended period, though there may be further delays resulting from the aftershocks.

“Reassuringly, inflation pressures have remained well contained. Inflation has declined and now sits below 2 percent.

“Given ongoing uncertainty around global conditions and the moderate pace of domestic demand, it remains prudent to keep the OCR on hold at 2.5 percent.”

In reality though, given the state of the world economies and the European crises I expect we will see this remain stable for most of this year. If there are further natural disasters, this again could hold these rates down allowing everyone to recover. However, the pressure on the New Zealand banks to make money from an increasing expensive cash raising exercise could see the actual costs of borrowing increase, especially for business. Remember they only make $millions of profit and they will be pressured by the shareholders to continue doing so.

They are already squeezing the man on the street for more. I believe ANZ raised it's standard home loan application fee from $250 to $500. Was that because it is more expensive for them to process the loan? NO it was because there are less borrowers so they have to recoup their money from somewhere. For this bank the "cost" of processing personal loans (as with the others) has actually decreased over the years.

2012-01-19T21:11:00.001-08:00

Banks not responding - isn't that a call centre anyway? - http://ping.fm/6zkdU

2012-01-17T20:43:00.001-08:00

Perhaps should look at robbinhood.co.nz - http://ping.fm/molC3

2012-01-12T19:24:00.001-08:00

Soon the banks will have no staff? - http://ping.fm/Cpqs2

2012-01-08T13:12:00.001-08:00

IRD tax avoidance rules - http://ping.fm/WOMUW

2012-01-08T11:28:00.001-08:00

Don't ALL banks need a new model? - http://ping.fm/jZLce

2012-01-04T17:33:00.001-08:00

If I offend you - http://ping.fm/YZoF4

2012-01-04T17:18:00.001-08:00

Sexy Inspired and Wealthy Women - http://eepurl.com/ieihY

2012-01-02T12:09:00.001-08:00

Don't multitask - http://ping.fm/KdlFO

2011-12-18T10:13:00.001-08:00

Class action against the banks in Oz - anyone willing in NZ? - http://ping.fm/IZVgz

2011-12-16T16:09:00.001-08:00

Why the banks appear like drug dealers - http://ping.fm/E4Qla

2011-12-12T22:50:00.001-08:00

Now real insight - http://ping.fm/O36eF

2011-11-30T13:03:00.001-08:00

Finally regulators split from banks - http://ping.fm/iSJR7

2011-11-16T22:31:00.001-08:00

The explanation to the Greek Bailout - http://ping.fm/itd5r

Demystifying the Greek Bail Out

2011-11-16T22:23:00.000-08:00

For those of us looking for a simple explanation:

It is a slow day in a little Greek Village. The rain is beating down and the streets are deserted. Times are tough, everybody is in debt, and everybody lives on credit.
On this particular day a rich German tourist is driving through the village, stops at the local hotel and lays a €100 note on the desk, telling the hotel owner he wants to inspect the rooms upstairs in order to pick one to spend the night.

The owner gives him some keys and, as soon as the visitor has walked upstairs, the hotelier grabs the €100 note and runs next door to pay his debt to the butcher.
The butcher takes the €100 note and runs down the street to repay his debt to the pig farmer.
The pig farmer takes the €100 note and heads off to pay his bill at the supplier of feed and fuel.
The guy at the Farmers' Co-op takes the €100 note and runs to pay his drinks bill at the taverna.
The publican slips the money along to the local prostitute drinking at the bar, who has also been facing hard times and has had to offer him "services" on credit.
The hooker then rushes to the hotel and pays off her room bill to the hotel owner with the €100 note.

The hotel proprietor then places the €100 note back on the counter so the rich traveller will not suspect anything.
At that moment the traveller comes down the stairs, picks up the €100 note, states that the rooms are not satisfactory, pockets the money, and leaves town.

No one produced anything. No one earned anything.
However, the whole village is now out of debt and looking to the future with a lot more optimism.

And that, Ladies and Gentlemen, is how the bailout package works

2011-11-02T22:34:00.001-07:00

Fat cats getting fatter is it only the UK? http://ping.fm/R3qu7

2011-09-29T22:11:00.001-07:00

To fix or not able to fix? - http://ping.fm/Km46K

2011-09-22T19:04:00.001-07:00

No praise like self praise heh bankers? - http://ping.fm/Tte9k

2011-09-19T23:17:00.001-07:00

Rates set to climb - http://ping.fm/JGkPt

2011-09-18T14:54:00.001-07:00

EU could hit NZ hard financially - http://ping.fm/ettqF

2011-09-12T16:09:00.001-07:00

UK politics trying to get it wrong with banking - http://ping.fm/XmSEe

2011-09-06T23:59:00.001-07:00

But are they brave enough I know top bankers wont do this - http://ping.fm/0RXjK

2011-09-02T15:59:00.001-07:00

Really suing the banks, haven't they enough liquidity problems? http://ping.fm/gnxtE

2011-08-29T19:27:00.001-07:00

Bankers under pressure, they only made billions this time - http://eepurl.com/fuTas

2011-08-29T14:14:00.001-07:00

A leopard never changes it's spots - http://ping.fm/coXbB

2011-08-29T14:12:00.001-07:00

The GFC was 2007 not 2009 - http://ping.fm/e0NPw

2011-08-16T23:03:00.001-07:00

The reason you need a business mentor now - http://ping.fm/cmt5P

2011-08-09T22:13:00.001-07:00

FMA starts well http://ping.fm/BnGWq

2011-07-30T20:56:00.001-07:00

Why the bank wont give you money - http://ping.fm/wzaoo

2011-06-13T20:52:00.001-07:00

Crocodile tears over inability to lend, Highstreet abandoned? - http://eepurl.com/eghav

2011-06-06T00:18:00.001-07:00

Online Mentor facebook store now open check us out www.facebook.com

2011-06-06T00:10:00.001-07:00

Now online at facebook - http://ping.fm/kloAZ?sk=app_135607783795

Fourth Small Business Summit

2011-06-05T22:25:00.000-07:00

Do government really believe SME's are the engine room of New Zealand? If so are they really putting the right fuel in our tank? Join us on the debate - ask the politicians what's in it for us?

At the 2009 summit the Minister for Small Business, Hon. Maurice Williamson said "What part of NO don't you understand? You just need to get on with it!" And we did and SME's continue to get on with it, and with a positive outlook and action plan, we will thrice and help the country to grow. With some big companies falling over after the recession it is the SME's picking up the slack. SME's make up 86%of the New Zealand economy.

Policy Debate - Many government policies have changed since last year and most of thses impact SME's I wonder what difference the election will make and the new policies it may bring? You can question the politicians and business leaders at this years Small Business Summit.

Our keynotes - "Partying and Insurance". Sharon Killen (GetaPartybus) and Naomi Ballantyne (PartnersLife) share their stories and insights.

In the afternoon we then breakout and you can have an opportunity to discuss and brainstorm with your peers, work through some fo the common challenges, led by a successful facilitator. Get inspired and motivated. Pick up some practical solutions and implementation ideas. Network.

The Fourth New Zealand Small Business Summit, Waipuna Conference Centre, Auckland, 24th June 2011.

The Online Mentor can offer a special discounted rate of $184 (normally $241.50).

Go online at www.smallbusinesssummit.org.nz
hit "register"
Enter all your details, create a user name and password and hit "next"
Enter the number of employees and directly under this in "Industry Membership" enter the code BSC141
Enter your credit card details and "pay now"
All attendees have the chance to win one of TWO trips to Rarotonga.

www.smallbusinesssummit.org.nz

2011-06-05T22:16:00.001-07:00

2011-06-05T16:10:00.001-07:00

Strongest banks, but not in customer service? http://ping.fm/LLJaQ

2011-04-27T23:00:00.001-07:00

The Perfect Bank Letter and Bank Exec Fraud? - http://eepurl.com/drOKT

Buyer Beware - Did you read those peksy terms and conditions?

2011-04-19T15:11:00.000-07:00

I have long been an advocate of really reading contracts, really understanding the nitty gritty of terms and conditions.

Well I think the banks need to grab their armour as there are some individuals working towards a common cause. Fairness towards bank clients, transparency of bank procedure and accountability of the banks when they (invariably) get it wrong.

BANKING LAWYER John Waugh describes it as a "Ye Gods" moment.

It was the moment the penny dropped among the partners in his law firm about just how susceptible businesses using internet banking are to theft by employees.

Waugh, from Daniel Overton and Goulding, has launched a civil lawsuit against ASB on behalf of a businessman who was the victim of more than $300,000 in thefts by an employee. That employee had responsibility for creating daily schedules of payments using the internet banking platform provided by the bank.

The employee had made a series of more than 50 fraudulent payments to a number of accounts she controlled.

The boss had not recognised the thefts for what they were because the employee entered the names of legitimate suppliers as the payees alongside the numbers of the accounts she controlled, Waugh said. Afterwards, the correct numbers were reinstated in the library of creditors held on the banks' system to cover up her tracks, he said.

When the boss scanned the list of daily payments going out, he checked off the payee names and everything looked fine. Waugh said he naturally assumed the account numbers entered by his employee were correct.

Waugh said his client was unaware that, in "100% of cases", banks – it is not just ASB – do not check the name of the payee and the account number match before allowing transactions to go ahead.

"Bank customers assume the banks use all the information required as they must give it to enable the payment instruction to be received and in fact they are actually left relying on the honesty of their employees rather than the integrity of the bank product," he said. "That internet banking works so well most of the time is because most of the time you are dealing with honest employees in positions of trust."

Waugh said the banks have not told Kiwi businesses they do no cross-checks, leaving the vast majority unaware of the "flaw" and with a false sense of the security of internet business banking. That argument will be central in the case Waugh is bringing against ASB. Read the full article

2011-04-19T15:10:00.001-07:00

Do banks need armour? http://ping.fm/deoRQ

2011-04-18T16:33:00.001-07:00

The Perfect Bank Letter and Bank Exec Fraud? - http://eepurl.com/drOKT

The Perfect Letter to Your Bank

2011-04-18T15:55:00.000-07:00

We all struggle from time to time communicating effectively with our bank. Especially on the subject of requesting more funds from them. The Banks seem preordained to say no.

Well I think the perfect letter to enable you to request money was written in 1984 and I encourage everyone to replicate this and get the funds to flow again.

Warning this may make you smile: The Perfect letter

2011-03-31T23:32:00.001-07:00

Do you think the ombudsman has enough teeth? http://ping.fm/QRfFa

2011-03-22T20:22:00.001-07:00

These product have been sold by banks in NZ will these banks be ruled against? http://ping.fm/MBAI3

2011-03-07T22:42:00.001-08:00

Just released http://ping.fm/v3iIl

2011-02-18T21:46:00.001-08:00

Mentor video on You Tube http://ping.fm/q1U6p

2011-02-15T16:08:00.001-08:00

The Price of Banking vs the value? - http://eepurl.com/cFf4U

2011-01-31T16:51:00.001-08:00

Can't afford to improve despite the extra $250million? Poor banks - http://ping.fm/WAOY5

2011-01-31T16:50:00.001-08:00

My comments on banking "customer service" picked up again - http://ping.fm/y2pja

2011-01-19T15:21:00.001-08:00

UK Ombudsman grows some, Barclays tells us forget the crisis and stop moaning, "Heartland" continues to develop - http://eepurl.com/ckjS5

2010-12-14T10:53:00.001-08:00

ANZ's Christmas Present, New Bank gets closer and Westpac boss parties hard - http://eepurl.com/bWx6L

2010-11-10T12:44:00.001-08:00

Banking industry under global scrutiny - http://eepurl.com/bwwbn

2010-10-17T13:07:00.001-07:00

The US Banks really do make an error in your favour - http://ping.fm/CjaRb

2010-10-16T23:56:00.001-07:00

Bank got your house? - http://ping.fm/SC6Ct

2010-10-16T23:54:00.001-07:00

Not so much like monopoly - http://ping.fm/7uZ8R

The Bank Makes an error in Your Favour?

2010-10-16T23:09:00.000-07:00

But although they messed up for some reason they wont take the consequences.

I don’t know what you think about this – but I think she should be applauded for exposing how lazy banks are and how costly their simple mistakes could be. It, to me, shows the complete lack of control by centralizing everything and removing the double check. Instead of prosecuting shouldn’t this be the penalty the stupid bank should have to live with? Technically isn't this like monopoly where “the bank makes an error in your favour”? In the game you get to keep the money....

http://www.abc.net.au/news/stories/2010/10/17/3040384.htm?section=justin

2010-09-30T23:20:00.001-07:00

Do you trust your bank? We want to know - http://ping.fm/Eu1CJ

2010-09-28T20:55:00.001-07:00

Banks face legal action - http://ping.fm/zzZUa

2010-09-28T20:42:00.001-07:00

NZ Banks making hay off the tax changes - http://ping.fm/1JxHD

2010-09-20T15:28:00.001-07:00

Banking out of the woods? Almost for NZ - http://ping.fm/1zHQb

2010-09-12T21:32:00.001-07:00

Now the crisis is over ANZ appoint another man to take the reins - shame

2010-09-12T21:29:00.001-07:00

ANZ appoints new top man - http://ping.fm/AP4y5

2010-09-12T12:54:00.001-07:00

NZ Banks okay, for now......http://ping.fm/VSnD5

2010-09-09T23:26:00.001-07:00

NBR reports that the Kiwibank is strapped for cash - http://ping.fm/HGb8c

2010-09-08T15:20:00.001-07:00

Banks printing money but will it help? - http://ping.fm/NxfFb

2010-09-04T17:30:00.001-07:00

The legacy of our Banks - http://ping.fm/gnsZQ

2010-09-02T15:26:00.001-07:00

Perhaps we'll finally believe the Bank's marketing? - http://ping.fm/SdZNn

Banks taking PR spin to a new level

2010-09-02T15:19:00.001-07:00

Released by the National Business Review this morning their commentary (and mine) on the Banking survey, more to the point the increased satisfaction level results.

I have to say when you read the survey it looks great, average satisfaction of New Zealanders with their Banks about 78%. That's a good score. However, what the NBR tells you and the survey doesn't is that this result is the outcome of two (yes two) questions, from a sample of 12000 people from age 14 and up. Does a 14 year old really know how satisfied they are with their bank? Really?

In fact one Bank reports a 0.9% increase in score. From the results, that only equates to 0.00036% of the whole banking population that are satisfied.

So it is true, you can make statistics say whatever you want as long as you present them right! more

2010-09-02T15:12:00.001-07:00

What do Bank statistics say? Anything you want them to - http://ping.fm/7Bzur

2010-09-01T00:16:00.001-07:00

Kiwibank pick one of thier own for top job - http://ping.fm/Gd6MV

2010-08-31T00:50:00.001-07:00

The Banks Have been Busy, That's the good news - http://ping.fm/dXX0Q

2010-08-31T00:36:00.001-07:00

No business wants to borrow think Banks - http://ping.fm/c0AyA

Banks Ready to lend but no takers? They're kidding right?

2010-08-31T00:19:00.000-07:00

Unfortunately no. I noticed this article in the NZ Herald on Sunday 22nd August.

The first line that really caught my eye was the BNZ statement that "the demands for funds is not also strongly evident". Sorry Mr Thorburn but where have you been sitting? (In your ivory tower?). I have good businesses crying out for funding as they come out of the downturn bemused but alive. As they crawl into the light looking to grow. They want to borrow, they mostly meet good lending criteria but where is the Bank that will fund this?

If that was not insult enough then comes the statement "businesses are reducing debt and not expanding". Really? Who are these businesses? Most of the client I work with know growth sucks cash and they are poised to grow, if only they could get funding, they may be wiser about their overall strategies to do with debt, but they still want to grow.

Then comes the money maker "from a banker's point of view, reduced lending is bad for business" Hurrah! Have they done something about it? Well I believe they have but watch the market for the real results. The proof in this pudding is in the business growth.

More

2010-08-29T21:44:00.001-07:00

Lending avaial ble for small business in NZ - http://ping.fm/F2aum

2010-08-29T21:43:00.001-07:00

If one bank can lend more will they all? - http://ping.fm/1dXw1

2010-08-29T14:13:00.001-07:00

Borrowing rates paused? - http://ping.fm/13tx9

2010-08-29T14:10:00.001-07:00

Will this mean better rates for your money? - http://ping.fm/xc0gS

2010-08-16T01:43:00.001-07:00

A Koru lounge at the BNZ? - http://ping.fm/eofKH

2010-08-14T23:20:00.001-07:00

Craigs NZ in great move - http://ping.fm/Zqedx

2010-08-10T14:24:00.001-07:00

Finance for small startups - http://ping.fm/zlQmX

2010-08-10T14:23:00.001-07:00

Early repayment fees - a case worth watching - http://ping.fm/7EbXL

2010-08-08T23:06:00.001-07:00

ANZ distancing itself? http://ping.fm/n3xFM

2010-07-28T23:15:00.001-07:00

Does your bank understand your business? Take the poll - http://ping.fm/fYKxE

2010-07-28T23:14:00.001-07:00

Legal action over Bank fees? Take the poll http://ping.fm/2VhdD

2010-07-28T00:57:00.001-07:00

The latest banking fiasco - Banks make errors - http://eepurl.com/H0I9

2010-07-24T21:55:00.001-07:00

Business lending down - http://ping.fm/8eZE0

Still difficult to get a business loan? getting worse?

2010-07-24T21:03:00.000-07:00

I came a across an interesting article the other week and I have attached it to the end of this blog. Basically it talks about how Australian Banks would prefer to lend on residential homes than on businesses.

Whilst the article is ensconced in Australia and that economy it is interesting the point it makes, and, need I remind you what country owns most of our Banks here in NZ?

By sticking to residential lending the Banks appear to hamper economic growth by not lending to businesses in the time where a little more cash flow could stimulate a whole economy. In fact, in Australia the article goes on to day business lending has dropped 9 percent. And then it goes on to comment about the interest rates to businesses.

The article congratulates the fact that a banker has brought this to the attention of the media. Poppycock (I wanted to say something stronger). Congratulations can only be awarded when Banks start stimulating the economy and lending at better rates to good businesses.

It's all very well applauding the words - however, i await the actions I do not believe are coming.

More

2010-07-15T23:30:00.001-07:00

Check this out - BrightMind LABS team on the 411 Technology TV Show at 10:30pm tonight http://alturl.com/ni7hd - not to be missed!

2010-07-15T17:32:00.001-07:00

Banks avoiding cash flow lending to business - http://ping.fm/SsBwP

2010-07-12T01:21:00.001-07:00

Do you trust your banker? - http://ping.fm/46n1h

Do you trust your Banker? Will you ever?

2010-07-12T00:23:00.000-07:00

I came across an interesting article today, Bankers Have a Chance of Redemption (article link at the end).

Really? If this is true I could be knocked over. It seems that the chairman of HSBC admits that "the importance of values in delivering value" is the most important lesson to be learnt from the crash. What? What does that mean? Seems politics for "calm down, everything is okay, we are not going to hurt you" whilst they calmly stick a knife in your throat.

He goes on to hope (hope, yes we all hope we will win the lottery) the bank chiefs can transform their cultures into a values driven culture of banking. The article even goes on to speak of moral obligations.....

When I used to work in Banks we had a set of "values" that were written down and spoken about as a core theme for all employees, it meant diddly squat to the way business was done and even less to how we treated customers. perhaps that's the "value driven culture"?

Moral obligations? Then perhaps many of the Banks could look to their extremely misleading advertising campaigns? One client of mine even questioned them as being "false advertising"; but as I have said before, there's never a start date on them..

So until the Banks step up to some social responsibility and bring through a proper place to help, not squeeze, genuine customers in financial difficulty, and there are lots, I cannot see trust restored. Perhaps they'll give back some of the profits to the communities they took it from?
Article

2010-07-04T12:05:00.001-07:00

Are the surveys accurate or another media drive? - http://ping.fm/D1rUZ

Is business confidence really down?

2010-07-04T12:00:00.000-07:00

I read with interest the economist article, you can read it here

I do wonder though is the survey conducted on a level playing field? Are the respondents always the same?

If interest rates go up does business confidence naturally fall? I am sure many businesses who are pulling through the recession, still in survival mode, understand that an interest rate rise can severely impact cash flow. Many business owners I talk to though have not changes their mind or their level of confidence, they either know they will survive, know they will survive with hard work or are struggling and hope they will survive. I haven't seen those attitudes change in many months, so who are the people who were confident in May who are now not so in June?

In other words, is this survey to be believed as accurate?

2010-06-30T22:34:00.001-07:00

Need a place for your mortgage? - http://ping.fm/NVFlE

2010-06-30T13:13:00.001-07:00

Sweden leads the way again for women - http://ping.fm/SlhS5

2010-06-29T22:09:00.001-07:00

More "tools" into the banking system? - http://ping.fm/6Yd8w

2010-06-28T14:40:00.001-07:00

Online mentor launched for business - http://eepurl.com/FpAp

Company Newsletter - June 2010

2010-06-28T14:15:00.000-07:00

Company Update - http://eepurl.com/FpAp

2010-06-10T15:09:00.001-07:00

Financial discrimination or advantage to the female? - http://ping.fm/l06eT

Financial Discrimination Or Female Advantage?

2010-06-10T14:52:00.000-07:00

I recently came across this article from ForbesWoman highlighting the forward thinking Iranian Bank Melli for opening a women only branch. This enables the Iranian women to take charge of their own money but also in an environment that respects the strict laws of segregation.

However, the article then went on to highlight the continuing discrimination against women in America from the American financial sector. I read with interest how women were completely overlooked or ignored in favour of their male partner. All the time I was thinking "if these women are financially in charge why do they put up with it?" These women are obviously capable, high earners, yet not one of them walked out or changed provider. One was son incensed with the treatment of her US$250,000 investment she now only deals with the company online. Why is she still dealing with them at all?

Have a read for yourself and let me know what you think, I for one, being Machiavellian, would use this discrimination to my advantage to secure a better deal....but then that's just me!

Read more here

2010-06-07T23:35:00.001-07:00

I simply have to agree the exec man have no clue about reality - http://ping.fm/X4lxv