The question of whether or not Maori should form their own bank has come up again this time in discussions within a high level New Zealand Maori Council working group on Housing and Housing Affordability. The last time the prospect was raised was back in 2002 and Council Spokesperson, Matthew Tukaki, has said its time to put it back on the table.

“Our Housing and Housing Affordability working group was given the challenge of identifying the barriers and opportunities for Maori when it comes to buying a home and during that process the same thing comes up time and time again – the inability of many to access finance or credit. When you have a look at some of the data Maori are more likely not to own a home and be stuck in the rental trap at the same time many are either on minimum wage or just above and not keeping pace with the cost of living.” Tukaki said

“Governments announce policies to support Maori home ownership but in order to do this we need to take a look at the root causes that prohibit us – the first is access to credit and finance. That means taking a cold hard look at the way the major banks are operating as well as the income to mortgage ratios. The Reserve Bank decision to ease the loan to value ratio (LVR) doesn’t answer the question of Maori and equity of access.” He said

“The same is true of the amount of Maori land out there where people can apply for mortgages but Banks are more risk averse, Maori small business not growing to scale or capacity because of the lack of funding – so its actually less about a bank and more about why this call? This is where we need to have a look at further reforms of the financial services system – credit reporting and credit records, loan to value ratio’s, deposit percentages on fixed term personal loans and so on. That is why its time to put this back on the agenda and have an honest look at why so many of our people are locked out of the system, prohibited from participation and so on.” Mr Tukaki said.

• 2016 Statistics NZ study found between 1986 and 2013 the proportion of Māori living in owned homes dropped 20 per cent.
• In 2013, 28 per cent for Māori adults owned a house, compared with 57 per cent for other New Zealand adults.
• The proportion renting in the private sector rose rapidly from 1986 for Māori from 41 per cent to 77 percent.
• Rates of Maori Homeless are at record highs

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