Banks shying away

The banks shied away from making too many moves in the deposit rate war as they prepared for new liquidity rules requiring them to limit their reliance on short-term offshore funding.

Tuesday, April 6th 2010, 11:46AM

In rate changes last week, Kiwibank slashed its six-month term by 100 basis points, while lifting its 12-month rate by 15 points.

RaboPlus looked at short-term deposits, lifting its three-month rate by 15 points, its six-month rate by 20 points, and its 12-mont rate by 10 points, while HSBC cut its one- and two-month terms by 10 points and its three-month terms by 15 points for deposits over $100,000.

Credit Union Baywide boosted its six-month term 10 points, its nine-month term 15 points, its 12-month term 15 points, and its 18-month term 25 points. It also introduced a five-year term at 7%. Southern Cross Building Society upped its 12- and 18-month terms by 10 and 20 points respectively.

Fisher & Paykel Finance went long, boosting its 18-month and two-year rates by 75 basis points, and its three- through five-year rates by 50 basis points.

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Banks shying away

The banks shied away from making too many moves in the deposit rate war as they prepared for new liquidity rules requiring them to limit their reliance on short-term offshore funding.

Tuesday, April 6th 2010, 11:46AM

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