Tuesday, 01 April 2025 12:25

Bagrie bags banks

Written by  Milking It

OPINION: Noted economist and self-promoter Cameron Bagrie took one look at KPMG's recently released Financial Institutions Performance Survey on banks and zeroes in one key number that suggests banks are so risk averse in this country that they are probably stifling growth and innovation.

That number is 0.08%, the ratio of impaired asset expense to average gross loans and advances.

Bagrie says this is incredible considering the economy is supposed to have experienced the worst economic climate since the global financial crisis.

"What risk have banks been taking?" he asks.

The low impairment charges and lift in banks' profitability tells a fundamentally different story relative to the economy's performance.

"We are not going to get an appetite to take risk in this economy - which is desperately needed - if the banking sector is not on board taking risk."

More like this

Kiwisaver Boost

OPINION: Being a stock manager of a Government MP's farm can come in handy.

Domestic Focus

OPINION: After hogging the media limelight for telling a NZ Chinese MP to "go back home", Winston Peters has decided to focus on a domestic issue - oil and gas drilling.

A No-Brainer

OPINION: With fuel prices soaring, one would have expected most farmers to be reclaiming excise duty on petrol.

Floating Farm Sinks

OPINION: The world's first floating dairy farm, once hailed as a vision of farming's future, is up for sale after seven years.

Featured

Southland Farmers Face Wet Weather Toll, Support Available

Farmers across parts of Southland and South Otago are continuing to deal with difficult conditions after a prolonged run of wet weather, with pressure building around feed supply, stock management, pasture damage, farm infrastructure and everyday workloads.

How Wearable Tech Powers This 1,850-Cow Dairy Farm

For Canterbury dairy farmers Sian Meijer and Rick Wobben, wearable technology has become one of their most valuable on-farm tools - helping manage 1850 cows across an expansive, high-performing dairy operation while improving efficiency, mating outcomes and day-to-day decision making.

New Dairy Welfare Code Released, Takes Effect 2027

The first major update to the Dairy Cattle Code of Welfare in more than a decade has been released, marking what DairyNZ describes as an important step in ensuring animal welfare standards continue to evolve alongside scientific evidence and on-farm realities.

National

Machinery & Products

» Latest Print Issues Online

Milking It

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter