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

 


BNZ to fund interest free and low interest loans

BNZ to fund interest free and low interest loans in $10m community finance initiative


BNZ has committed $10m to a community finance initiative offering interest free and low interest loans to people banks don’t normally lend to.

The programme will start with a one-year pilot and will be delivered in partnership with the New Zealand Government, Good Shepherd NZ and The Salvation Army.

BNZ’s director of strategy and business performance Michelle van Gaalen says the pilot will aim to help people become self-sufficient and get away from using pay-day lenders and loan sharks and will build on BNZ’s range of financial literacy initiatives.

“BNZ wants to help all New Zealanders be good with money, including those who currently don’t have access to conventional sources of credit.

“Traditionally, banks haven’t provided loans to customers with minimal income, so those people have been using the only other option they feel they have - borrowing at extortionate rates.
“By committing $10m of funding over the next five years, BNZ is taking the first step to changing this imbalance and empowering those who are vulnerable,” she says.

BNZ will draw on the experience of its parent National Australia Bank (NAB) which has been running a successful community finance programme for more than 10 years.

Ms van Gaalen says, “For some, Community Finance is seen as a way to help people break out of the cycle of poverty, for others, it’s a way to promote economic development, employment and growth. For us; it’s simply the right thing to do.”

The development of the pilot is in early stages but is intended to launch over the coming months initially in areas where the need is most acute.

Unlike a traditional microfinance model, this initial pilot will target people rather than small businesses. BNZ will provide capital, the Government will contribute to NGO operating costs, and Good Shepherd NZ will oversee the initiative. The Salvation Army will be responsible for managing the loan applications.

BNZ has appointed Frances Ronowicz to the role of head of community finance to lead the new initiative. Ms Ronowicz brings ten years experience with Instant Finance where she held senior roles, most recently general manager operations.

As well as providing funding, BNZ will support Community Finance with a financial literacy programme.

Ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Plain Packs Plan: Gordon Campbell On Tobacco Politicking (And The TPP Death Watch)

Has Act leader David Seymour got the easiest job in the world, or what? Roll out of bed, turn on the radio and hmm…there do seem to be a lot of problems out there in the world. Must think of something. And so it came to pass that this morning, David Seymour took up his sword and shield to fight for a world that’s about to be denied the rich and vibrant beauty of tobacco advertising. More>>

ALSO:

.


RECENT TPP MEETING:

Professor Ian Shirley: The Budget That Failed Auckland

The 2016 budget offered Auckland nothing in the way of vision or hope and it continued the National Government’s threats against the Auckland Council. Threatening the Council with over-riding its democratic processes if it fails to release land for housing is a bullying tactic aimed at diverting attention away from the fundamental problems with housing in the region. More>>

ALSO:

PM's Post Cab Presser: Budgets, Trusts And Pacific Diplomacy

Today Prime Minister John Key summarised last week’s budget and provided further detail about his upcoming trip to Fiji. He said that there has been “plenty going on” in the last couple of weeks and emphasised the need for Auckland council to facilitate more housing supply. More>>

ALSO:

Max Rashbrooke: A Failure Of Measurement: Inside The Budget Lock-Up

Shortly after the embargo lifted at 2pm news organisations started filing reports claiming that health, and to a lesser extent housing and education, were the ‘big winners’ out of the Budget. It failed to take into account the fact that in most cases the apparent increases were in fact cuts. Because of the twin effects of inflation and population. More>>

ALSO:

DOCtored Figures: Minister Clarifies DOC Budget

“Commentators have overlooked the fact $20.7m of that perceived shortfall is new funding for Battle for our Birds 2016, provided for in last week’s Budget...” DOC also has approval in principle to carry over a further $20m to 16/17 due to unexpected delays in a number of projects. More>>

ALSO:

For The Birds: Gordon Campbell On The Budget

Budgies, so their Wikipedia page says, are popular pets around the world due to their small size, low cost, and ability to mimic human speech. Which is a reasonably good description of Finance Minister Bill English eighth Budget. . More>>

Max Rashbrooke On The 2016 Budget

The best label for this year’s announcement by Bill English might be the ‘Bare Minimum Budget’. It does the bare minimum to defuse potential political damage in a range of areas – homelessness and health are prime among them – but almost nothing to address the country’s most deep-rooted, systemic social problems. Indeed the Budget hints that these problems may get worse. More>>

ALSO:

Gordon Campbell: On Bank Scandals (And Air Crashes)

Last month, the Australian Securities and Investment Commission (ASIC) filed proceedings against Westpac over activities that have some distinct echoes of the Libor scandal. More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news