Briefs: Fitch affirms Heartland rating, revises down Kiwi banks 20 May 2020 6:06AM Banking Day staff Ratings agencies, Fitch, Authorised deposit-taking institutions, Briefs, Remittance market, Remittance networks Fitch Ratings has affirmed Heartland Group’s and Heartland Bank’s long-term issuer default ratings at BBB and the long-term IDR of Heartland Australia at BBB-. The outlooks of all three remain stable. Fitch said the bank has “solid buffers to withstand its base case scenario… and enters the economic downturn with sufficient headroom in its key financial metrics.” However, three of New Zealand's smallest locally-owned banks have had their outlook revised down by Fitch. TSB Bank, SBS Bank and Co-operative Bank have all had their outlook revised to negative from stable. Fitch said government support for the the three banks as well as the Wairarapa Building Society and some credit unions, was possible but could not be relied on. The Reserve Bank's open bank resolution policy also made it less likely the government would provide TSB, SBS and Co-operative with financial support if required. Banks, insurance companies and other financial services operating in New Zealand are set to pay more towards funding the Financial Markets Authority (FMA). In last week's Budget, the government announced it would cut the amount it funds the FMA to 17 percent of its total budget by 2023 from 25 percent - and industry twill have to pick up the difference. The budget for the financial regulator by $12.5 million for financial year 2020/21, increasing to $60.8 million by 2022/23. The World Bank estimates that global remittances will fall 20 percent in 2020 due to Covid-19, as struggling migrant workers are unable to send money home. By comparison, the fall in remittances in 2009 after the global financial crisis was just 5 percent.