NZ bankers respond to Labour attack 07 August 2015 4:06PM Bernard Hickey New Zealand Bankers' Association CEO Kirk Hope said bank profits were not high compared to other major companies operating in New Zealand."As businesses supporting our economy, banks need to make a profit to stay strong and keep investing in New Zealand. Most New Zealanders welcome the fact our banks are strong," Hope said."The alternative, if you look at the banking sector in countries like Greece, is pretty catastrophic. We had no bank failures or bailouts during the GFC. That's down to our banks' strength and good management," he said.Hope said banks were working closely with their farming customers to provide options, including funding working capital in times of financial stress."Ask most farmers about how banks are supporting their business and you're likely to hear a good story. It's easy to take pot shots from afar but the reality is that banks and farmers are working together closely to get through what is going to be a challenging season or two."Responding to the criticism of credit card margins, Hope said the lending was unsecured and the higher risk was reflected in the higher interest rate.He said between one per cent and three per cent of New Zealand credit card customers paid just the minimum each month, which was significantly lower than in the United States and Britain, and over 50 per cent of customers paid off their balance in full every month. In the United States only a third of customers paid off their balances in full.Hope rejected the idea that banks had a 'cosy' agreement."Our banks operate in an intensely competitive environment, not least because of the requirements of the Commerce Act, but also because of the business they're in," he said.Earlier this week Moody's Investors Service pointed to the strong profitability and pricing power of New Zealand's biggest banks as a factor supporting its stable outlook for the sector."The banks' strong market positions have supported their pricing power, allowing them to achieve strong returns compared to the relatively low risk profile of their business models," Moody's said."New Zealand banks boast above-peer margins and operating efficiency which reflect the industry's concentrated structure and banks' considerable pricing power," it said.