Thanks ASB
March 26th, 2011 at 12:50 pm by David FarrarJohn Key has announced that ASB Bank is providing the following to help Christchurch recover from the earthquake:
- reduced interest loans and six-month repayment holidays to existing home loan customers significantly impacted by the earthquake
- additional cash flow relief through $100 million in loans to existing small and medium business owners impacted by the earthquake
- an additional $100 million in loans to encourage new business in the Christchurch region. These business loans will be interest free for the first 12 months
- $1 million in grants to community groups that have suffered damage or loss
$100 million interest free for a year is a significant dent on the bottom line. It is also essentially a vote of confidence that any new businesses will do well, and their investment will be repaid.
Related posts:
- Hooton on paying for Christchurch
- Making money from interest free loans
- Poor bastards
- Confusing figures on cost of universal allowances
March 26th, 2011 at 1:39 pm
All this from an Australian owned bank. Would Kiwibank be inclined to do the same? Me thinks not.
Vote:March 26th, 2011 at 1:40 pm
Why is the PM being the chief spruikmeister for a bank? Can’t they afford their own PR people?
Will Shonkey also be spokesmeister for the insurance companies as they reject claims?
Most policies make payment conditional on the insurer getting an opportunity to verify the extent of damage, and its cause. When building owners are not even notified, or given a chance to mitigate loss by removing items of value, who could blame an insurer or reinsurer for relying on such terms, or indeed pointing out that the cause of loss (or an indeterminable part of it, is not necessarily an insured event, but instead the act of a civil authority or government,
I don’t often agree with Stephen Franks, but with insurers, one never knows.
Vote:March 26th, 2011 at 1:55 pm
It’s hard to avoid the notion that ASB customers outside Christchurch are picking up the cost of the package for those in Christchurch. I’m all for charity when it’s elective (and NZers have been awesome here!)… but not so keen when it’s mandated.
Vote:March 26th, 2011 at 2:04 pm
@krazykiwi – if ASB hiked fees for customers to pay for the package, you would be right. But I don’t believe there has been any indication that they will.
Vote:March 26th, 2011 at 2:10 pm
kk is simply jealous that someone is getting something he isn’t and wants to stamp his little feet and shake his tiny fist.
The cost is a matter for ASB and its shareholders.
In effect, krazykiwi (if he’s a customer) is also picking up the cost for the free phone calls Telecom provided, for the free copies of The Press Fairfax provided, and for any charitable donations made my any company with which KK does business.
Vote:March 26th, 2011 at 2:53 pm
There were calls for Fonterra shareholders to donate 5c per milk solid on this years payout. This of course didn’t go down to well as many had donated through Fonterra and this was matched dollar for dollar by Fonterra. We were happy to give for CHCH but taking money from farmer shareholders is not the right way to go about it. I don’t need someone or something to be my conscience. I have found that when a large donation is given to a cause news soon spreads and one is been hit up constantly. If we had given 5c a m/s (adds up to rather a large amount per shareholder) I’m sure it wouldn’t be long before some other “worthy” cause would be looking for their 5c.
Vote:March 26th, 2011 at 3:12 pm
It is in reality a very generous gesture from the Board of the Commonwealth Bank of Australia who own ASB. Indirect thanks also need to go to its shareholders for without their tacit support the Board could not make the gesture.
In fairness to Kiwibank, its operational base is tiny compared with Commonwealth Bank of Australia. Its Board would no doubt help existing customers as far as it was reasonably able. The NZ Government is Kiwibank’s shareholder and is giving air arguably even more generous than the Commonwealth Bank of Australia / ASB.
Vote:March 26th, 2011 at 3:29 pm
$100 million interest free for a year is a significant dent on the bottom line.
Somewhere between 4-5 million. Not great at w.sale rates. But still nice.
# reduced interest loans and six-month repayment holidays to existing home loan customers significantly impacted by the earthquake
# additional cash flow relief through $100 million in loans to existing small and medium business owners impacted by the earthquake
Do they really have a choice? Many of those people won’t even be viable at the end of six months. so beating them up won’t make life better or relieve the stress, just make the situation worse. The bank has a choice. Work with people or make life hard and loose the money anyway. Just pragmatic common sense.
In the back of my mind I think other banks have already made similar gestures or have indicated that they will be assisting their customers.
Vote:Why should Key be ASB’s PR person?
March 26th, 2011 at 3:44 pm
@MNIJ – I’m not jealous of anyone or anything. Never have been. Life is too full of opportunities.
Vote:March 26th, 2011 at 3:48 pm
Why should Key be ASB’s PR person?
Which was my question right up the top.
Although, to be fair, neither Stuff or NZ Herald attribute the announcement to Key. Maybe its just DPF’s spin machine getting out of alignment with HQ.
Key’s Commissar and Czar have been coppiing pastings lately, Key no where to be seen. Good News? Key right there to smile, wave and steal the credit.
Shonkey – the PM for happiness. Let some other
Vote:suckerminister handle the bad news.March 26th, 2011 at 10:03 pm
Even if we take the interest rate at the current OCR, this essentially represents a donation of at least $3.5m. I don’t think that this is in any way insignificant, and deserves plaudits from the PM.
Vote: