Zoom Out To Lunch

Bernard & Jarrod: The RBNZ latest move to help bank lend

Newsroom Pro’s Bernard Hickey and Kiwibank Chief Economist Jarrod Kerr zoom out to lunch to talk about the Reserve Bank’s latest move to help banks lend to corporates. 

The Reserve Bank announced on Monday it would lend to banks dealing with distressed corporate borrowers, opening a new weekly Open Market Operation to buy corporate and asset-backed facilities.

They also hear from Reserve Bank Assistant Governor Christian Hawkesby on how the Reserve Bank’s plan differs from that of the US Federal Reserve.

They also talk about calls for New Zealand’s insolvency laws to be relaxed in a way that has already been done in Australia. This is where directors are exempted from liability for trading where insolvent. Prime Minister Jacinda Ardern said on Monday Commerce Minister Kris Faafoi was looking at similar changes here.

This is part of a daily 'Bernard and Jarrod Zoom out for Lunch' webinar series during the lockdown.

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