That has forced the bank to borrow more on the international money market to fund its loan book. ASB bank is forecasting a leap in its funding costs over the next year as international turmoil continues to weigh on wholesale money markets. Locally the bank is facing pressure from its dairy lending and has increased its overall impairment provision expenses by 46 per cent to $130 million. Chapman said she did not want to speculate on what the Reserve Bank would do and would not talk about potential home loan rates citing commercial sensitivity. Chapman said the bank had only lost $40 million on dairy sector lending in the last 10 years.

Source: New Zealand Herald August 09, 2016 23:15 UTC