Rates round-up
SBS chief sees deposit war going for at least another year
Ross Smith, chief executive of the Southland-based bank SBS, expects the deposit rate war to continue for another year, as the major banks prepare for central bank-enforced liquidity requirements.
With the majority of their funds sourced from offshore wholesale customers, they have had to offer high yields to attract retail customers and prepare themselves for the pending regulation.
"Rates are about one-and-a-half to two percent above what you'd expect it to be, and that doesn't make for healthy business," Smith said. "Hopefully they'll move back towards where they are traditionally."
Rabobank Capital Securities rate resets
The interest rate on Rabobank Capital Securities for the next 12 months was reset at 4.123%. The interest rate reset annually until 2016 at the 0.76% margin over the one year swap rate, and after that, will be reset quarterly at the same margin over the 90-day bank bill rate.
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