ANALYSIS: The RBNZ's finalised capital review will make banks safer, borrowing more expensive, deposit rates lower and lending more conservative. The real costs are likely to come from three sources: more expensive mortgages, lower deposit rates and fussier lending by banks. LOWER DEPOSIT RATESDeposit rates could go lower as a result of the new rules, but the amount is uncertain. Lower deposit rates, even small amounts, will hurt retirees who are relying on the interest on their deposits. They will cost borrowers more - around $765 a year for 30 years for the average New Zealand house today.

Source: Stuff December 05, 2019 19:52 UTC