Kiwibank says New Zealand banks will have to 'step up' to help customers get through the coronavirus crisis.
CEO Steve Jurkovich told Q+A banks are working with the Government on a response plan.
“In the past, one of the things I'd say is people have been quite critical of bank profits and those sorts of things. Now's the time for us to step up. We have to put money aside for a rainy day - if you think about all the Reserve Bank rules - now’s a rainy day.
“The most important thing right across the banking industry is make sure you get in touch. This is not a time to lean back and wait for things to happen. Get on the front foot and talk to your bank.”
Mr Jurkovich says there are a number of options that may be available to customers such as loan holidays or interest-only mortgages.
He expects lending rates will stay low for many years to come.
Finance Minister Grant told Q+A that it will take more than Government subsidies to keep people afloat.
“That really is about banks and government working together to make sure that customers can make it through this. It's in the interests of the banks to have customers that can come out the other side and can carry on.”
Meanwhile Kiwibank says while tourism has been devastated by Covid-19, our food producers could be well placed to handle the economic fallout.
He says farmers could reach a 'sweet spot' as people are always going to need to eat, even in an economic downturn.
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