Regulatory Alerts2022-12-15
Cost Adjustors for Cook Islands Banking
The Reserve Bank of New Zealand commissioned Business and Economic Research Limited to analyze the drivers of high interest rates in the Cook Islands banking sector. The report identifies scale limitations, complex land tenure laws, and risk costs as primary factors keeping borrowing costs significantly higher than in New Zealand. It recommends reducing operational costs through technology, improving financial literacy, and exploring alternative lending models to enhance economic prosperity.
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