On Friday morning the bank published its submission on the Reserve Bank's capital consultation which suggested borrowers would be hit hard by the plan. READ MORE: Reserve Bank plan 'has significant negative consequences for our country': banksIt is estimated the plan will require the banks to raise an additional $20 billion under the Reserve Bank's proposals, although Westpac said it expected the figure would be higher. Westpac's submission claims the Reserve Bank's proposals could add 100 basis points (1 percentage point) to borrowing costs in New Zealand. Westpac Westpac's submission on the Reserve Bank's proposal warns of sharply higher mortgage repayments in all parts of New Zealand. Too conservativeWestpac's submission said it supported the Reserve Bank's plan to ensure New Zealand banks were well-capitalised, but claimed the proposals were "unnecessarily conservative".

Source: Stuff May 23, 2019 22:23 UTC