Consumers ‘ripped off’
By
OLIVER RIDDELL
in Wellington
The National Party has attacked bankers for "ripping off consumers” in New Zealand.
Issuing new banking licences would not make any difference, said the Opposition spokesman on consumer affairs, Mr Roger Maxwell (Nat., Taranaki).
He said consumers were being ripped off by bankers because the financial sector worked on a cost-plus approach with a margin above borrowing of 5 to 10 per cent.
This meant that if and when interest rates declined at retail level, the downward movement would be minimised by the high margins expected by the financial sector. As rates moved down, margins as a percentage of the borrowed rate would have to increase if the total dollar returns of banks were to be maintained, Mr Maxwell said. This cost-plus approach by banks amounted to usury, he said, and their status in the economy had been inflated artificially by the Government.
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/CHP19870724.2.30
Bibliographic details
Press, 24 July 1987, Page 3
Word Count
151Consumers ‘ripped off’ Press, 24 July 1987, Page 3
Using This Item
Stuff Ltd is the copyright owner for the Press. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons BY-NC-SA 3.0 New Zealand licence. This newspaper is not available for commercial use without the consent of Stuff Ltd. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.
Copyright in all Footrot Flats cartoons is owned by Diogenes Designs Ltd. The National Library has been granted permission to digitise these cartoons and make them available online as part of this digitised version of the Press. You can search, browse, and print Footrot Flats cartoons for research and personal study only. Permission must be obtained from Diogenes Designs Ltd for any other use.
Acknowledgements
This newspaper was digitised in partnership with Christchurch City Libraries.