https://www.nzherald.co.nz/business/should-banks-help-taxpayers-cover-the-cost-of-money-printing/GXK2D4W3U5BQ6TOA6SGXJVW6AU/
Some of the world's economic bigwigs are considering whether banks should be forced to help taxpayers cover some of the costs of money printing.
Money printing done in response to Covid-19 saw central banks pump a huge amount of liquidity into the financial system.
This inflated banks' reserves, or their settlement accounts, with their central banks.
New Zealand-registered banks and other financial institutions now have a total of $55 billion in their settlement accounts with the Reserve Bank of New Zealand (RBNZ).
Before the RBNZ embarked on $71b of money printing in response to Covid-19, banks had around $6b to $8b in these accounts.
The problem for taxpayers is that central banks pay banks interest on these reserves, and interest rates are rising.
So, the European Central Bank is considering lowering the rate it pays banks on some of their reserves.....
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......Banks are still being supported by the RBNZ via its Funding-for-Lending programme.
While the RBNZ is now unwinding the largest part of its money printing programme – its Large-Scale Asset Purchase (LSAP) programme – it will until December keep lending banks money at the OCR via its Funding for Lending Programme.
While the interest rate banks must pay on these loans is rising, the programme is still giving banks relatively cheap funding. The RBNZ didn't want to stop the offering when it was clear it was no longer necessary, because it wanted to stick to its word and keep it in place for two years.
does anyone really need to learn this lesson?
Banks only ever help banks.
Quote from: arekaywhy on Oct 21, 2022, 09:39 AMdoes anyone really need to learn this lesson?
Banks only ever help banks.
As does everybody else, unless they are a charity, and even these focus mainly on making money to pay for their keep, and only when this is done they help others.
The Prime minister and now the Herald seem to think that banks should help taxpayers cover the cost of money printing.
Liam Dann: The Prime Minister is right, the banks have made too much money.
https://www.nzherald.co.nz/business/liam-dann-the-prime-minister-is-right-the-banks-have-made-too-much-money/RNAOWU5QXZBKTDI3BHCT4UKGDE/
Quote from: kiwi2007 on Nov 08, 2022, 04:08 PMThe Prime minister and now the Herald seem to think that banks should help taxpayers cover the cost of money printing.
Liam Dann: The Prime Minister is right, the banks have made too much money.
That woman would say that wouldn't she...and the Herald, well, they don't want to jeopardize their gubmint income.
What I find funny is that they create an issue, then when the obvious results of that action manifest themselves, they cry foul and gaslight the rest of us
Liam Dann is such a great journo that he states in his article that all these big profits are going to end up going to bank shareholders. It would've taken him 2 minutes for example to check dividends then he might've seen that ANZ for example has increased their latest div by 2 cents over their prior dividend and this is still 4 cents below the same end of year dividend paid in 2019... so wherever these profits are going it's not the shareholders mores the pity ;)