Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

BNZ profit shows lending regulation needed

22 October 2008


BNZ profit of $657,000,000 shows lending regulation needed


Finsec, the finance workers union, is calling on the government to impose regulation to promote ethical lending in exchange for wholesale deposit guarantees in light of the BNZ's $52 million profit increase announced yesterday.

"The banks want the Government to guarantee the borrowing they do to fund their lending. At the same time they are sending ever increasing profits overseas they expect the tax payer to give them a blank cheque to underwrite their business," said Finsec Campaigns Director Andrew Campbell.

"While the average person is tightening their belt, the banks want to carry on as if it were business as usual. We say they can't have their cake and eat it too," said Campbell.

"If the BNZ and other banks want the tax payer to underwrite their borrowing, then customers need and deserve guarantees that their lending practices will be fair and ethical. The BNZ says it has a conservative approach to lending, however we know that local lending is driven by unreasonable sales targets for staff," said Campbell.

"The BNZ has just increased its referral targets for tellers by 50% and for customer services officers by 66.6%. That means BNZ customers will be coming under more pressure to get into debt or take on other bank products," said Campbell.

"The $106 million increase in bad debt provisions indicates that potentially inappropriate lending is already occurring. BNZ staff have said the increase in targets forces them to act in ways that may not be in the best interests of their customers," said Campbell.

"All banks have a role to help the country through the current financial crisis. That means changing the lending behaviours that are not suitable to the tough times we are now in," said Campbell.

Finsec released a report on Fairness in Lending in August. The key recommendations of that report are attached to this media statement. A full copy of the report is available at:

http://www.finsec.org.nz/betterbanks/Fairness%20in%20lending%20report%20 (final).pdf

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Now-Former Cyclone: Gita Arrival Begins

2.41am Heavy rain is already occurring from Taranaki southwards to the Sounds, and is expected to spread over Buller, Nelson and the remainder of Marlborough over the next few hours.

Strong winds are expected to develop early this afternoon into this evening for the entire country, with the potential for damaging wind gusts from Taranaki and Taihape south to Westland and Banks Peninsula, including Wellington. More>>

 
 

Kauri Protection: Waitākere Forest Closure Proposed

At the 20 February meeting of the Environment and Community Committee, the council proposed to close the forested areas of the Waitākere Ranges Regional Park, with some exceptions, by 1 May 2018. More>>

ALSO:

'Hit And Run' Raid: NZDF Had Reports Of Civilian Casualties

The NZDF received intelligence updates within one or two days of the August 2010 SAS raid in Afghanistan that reported civilian casualties, including the death of a child, new OIA documents reveal... it appears they did not bother to investigate nor made any effort to help the victims. More>>

ALSO:

Christchurch Public Meeting: Complete U-Turn By Labour And NZ First On TPP

The TPP might have been re-branded as the CPTPP but it's still the same bad deal says Professor Jane Kelsey, New Zealand's expert on international economic regulation. More>>

ALSO:

Commerce, Etc: Thicker Bright Line For Real Estate

Revenue Minister Stuart Nash has confirmed the bright-line test on residential property sales will be extended from two years to five years in legislation currently making its way through Parliament.More>>

ALSO:

Prison Inspections: Reports on Manawatu and Paremoremo Released

The Office of the Inspectorate today released reports into Manawatu Prison and Auckland Prison (Paremoremo), the first two resulting from a programme of inspections of New Zealand prisons. More>>

Whistle Blowers: Government To Review Law On Protection

Work has begun on a review of the Protected Disclosures Act 2000, Minister of State Services Chris Hipkins said today. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages