Directors from ANZ, ASB, BNZ, Westpac, Kiwibank, Rabobank, The Cooperative Bank, SBS Bank, Heartland Bank, Bank of China and Bank of Baroda were interviewed by Deloitte. According to the report, 99% of respondents said they have not signed an attestation collectively while having their own reservations.
Shares of Westpac Banking Corp fell as much as 1.5%. The lender was hit with another U.S. class-action lawsuit on Monday over issues with its financial crime monitoring.
Westpac's chief economist Dominick Stephens and Westpac industry economist Paul Clark say they expect the impact of the coronavirus outbreak could knock 0.6 percentage points off New Zealand's March quarter GDP. They are now therefore predicting just 0.1% GDP growth for that quarter. They do, however, currently expect that tourism and other export activity will start recovering through the middle of 2020 and that as the level of GDP returns to normal levels, quarterly growth rates will be higher than normal.
The Commerce Commission closed a similar investigation into Westpac in October after a settlement including agreed changes to certain consumer credit contracts.