ASB hikes TD rates

Commonwealth Bank of Australia, the parent of ASB, said the deposit rate competition in New Zealand was damping its profit margin, in its September quarterly update, after it boosted its rates over the weekend.

Monday, November 9th 2009, 10:09PM

ASB cut its three-month rate 25 basis points, but boosted its six- and nine-month terms 75 and 40 points respectively, and its 18-month, two-, three-, four-, and five-year terms 75, 40, 60, 35, and 35 points, giving it the best bank rate for terms longer than two years.

Last week, ANZ Bank group chief executive Mike Smith complained about the deposit rate war, calling it “ridiculous” several days after ANZ and National Bank had taken the lead in the competition.

Banks have been looking to attract domestic retail depositors in preparation for when the Reserve Bank’s prudential requirements come into force. The global financial crisis saw offshore credit lines dry up for lenders, forcing them to look closer to home for their money.

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ASB hikes TD rates

Commonwealth Bank of Australia, the parent of ASB, said the deposit rate competition in New Zealand was damping its profit margin, in its September quarterly update, after it boosted its rates over the weekend.

Monday, November 9th 2009, 10:09PM

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