Time for FMA to put an end to banks’ pathetic excuses over OCR delays

Lobby group the Banking Reform Coalition wants the FMA to use its powers under the new Conduct of Financial Institutions (CoFI) regime to get tough on banks not passing on OCR cuts in mortgage rates immediately.

The financial markets regulator has new responsibilities as a bank conduct watchdog in getting to the nub of why banks are not passing on OCR cuts quickly. It has taken over from the Commerce Commission

The FMA told Parliament’s Finance and Expenditure Select Committee’ inquiry into banking competition that this is one of its top priorities.

CoFI came into effect on 31 March allowing the FMA to investigate claims the behaviour of financial institutions, such as banks, are not fair.