Briefs: Rates wrap, RBNZ confirms funding ratio, Sydney credit unions talk and SCF fraudster sentenc

Pricing differentials between major banks on their home loan rates will become more compressed, with Commonwealth Bank dropping its variable-rate loans by 40 basis points, or eight points more than that announced by NAB on Wednesday, for two of its major brands. Yesterday, NAB followed CBA with a cut of 40 bps on the bank's UBank home loan, a loan marketed to customers of CBA, ANZ and Westpac. Credit Union Australia cut its home loan rate by 25 bps. CUA has not otherwise made any "out of cycle" adjustments to its loan pricing. One lender to cut home loan rates by 50 bps (the same as the cut to the RBA cash rate this week) was Unicredit WA, according to RateCity.

The Reserve Bank of New Zealand confirmed yesterday that it will introduce the planned "core funding ratio" of 75 per cent from the beginning of 2013. Grant Spencer, deputy governor of the RBNZ, reiterated this date in a speech yesterday. Banks have already given a six-month reprieve on compliance with this target, although Sean Keane, author of a daily money market commentary from Credit Suisse, noted that New Zealand banks already have an average CFR of around 82 per cent.

Sutherland Credit Union and Northern Beaches Credit Union, both in Sydney, are in the early stages of negotiating a merger. Sutherland Credit Union said in a notice at its website that the "branches and brands of both credit unions will continue" if a merger proceeds. Sutherland had A$210 million in assets and Northern Beaches $110 million in assets at June 2011.

Gavin Bennett, a director of Datasouth Finance, will serve a minimum of three and a half years in prison following sentencing by a District Court judge in Christchurch yesterday. Bennett pleaded guilty earlier this year to defrauding South Canterbury Finance of NZ$65 million.