New Zealanders Continue To Pay Down Debt - KPMG Survey
First Published Monday, 23rd April 2012 10:09 pm - © 2012 Dow Jones
WELLINGTON -(Dow Jones)- New Zealanders and New Zealand businesses are continuing to pay down debt as worries continue about their economic outlook, KPMG's Financial Institutions Performance Survey released Tuesday indicates.
KPMG's Head of Financial Services said in a statement the deleveraging trend showed no sign of abating and could continue into 2013 and beyond.
"The global financial crisis was a wake-up call and people are now far more concerned about their debt levels and less likely to increase borrowing," Kensington said.
He added that banks trading within New Zealand continue to produce strong profits during the year.
"With the banking sector posting significant profits in 2011 it could be argued that we have now come out of the worst of the global financial crisis," said Kensington. "Given the soft business confidence it is possible some industry sectors are struggling and, should conditions not improve, a deterioration of asset quality cannot be ruled out in the future."
New Zealand's banking sector is dominated by the four large Australian banks--Westpac Banking Corp. (WBC.AU), Australia & New Zealand Banking Group (ANZ.AU), Commonwealth Bank of Australia (CBA.AU), which owns ASB Bank, and National Australia Bank (NAB.AU), the owner of Bank of New Zealand--and New Zealand government-owned Kiwibank.