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

 

Parliament Today:

Parliament Restarts: Prime Minister’s Statement

Our policy agenda and legislative programme will reflect the Government’s four priorities: • to responsibly manage the Government’s finances • to build a more competitive and productive economy • to deliver better public services to New Zealanders, an • to support the rebuilding of Christchurch. More>>

ALSO:

NZEI Survey Report: Special Needs Students Missing Out

The survey revealed that around 16 percent of students were on schools’ special needs registers, but nearly 90 percent of schools’ special needs coordinators did not believe there was adequate support for students and their learning... More>>

ALSO:

Interim Report: Waitangi Tribunal On Ture Whenua Legislation

Labour on Proposed changes to Maori land rules: “To have Treaty Negotiations Minister Chris Finlayson dismiss findings as ‘bizarre’ is totally disingenuous and disrespectful. What’s bizarre is Maori Development Minister Te Ururoa Flavell stubbornly pushing through this Bill before the Waitangi Tribunal has even completed its report..." More>>

ALSO:

Spy Update: Appointment Of GCSB Acting Director

GCSB Chief Legal Advisor Lisa Fong will become the Acting Director of the Government Communications Security Bureau (GCSB) from 15 February 2016, Minister Responsible for the GCSB Christopher Finlayson announced today. More>>

Protests Close Roads: TPP Signed In Auckland

“TPP was signed by Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Viet Nam.” More>>

ALSO:

Emails Behind 'Diplomatic Immunity' Case: Whitehead Report Released

“As previously indicated the conclusions reached by Mr Whitehead’s investigation are not unexpected but they are very disappointing,” Mr Mccully says. “At the heart of the matter is a single email, along with procedural shortcomings, which gave Malaysian officials the impression it would be acceptable for Mr Rizalman to return to Malaysia." More>>

ALSO:

Gordon Campbell: On The Treaty/TPP Overlap, And Iowa

The fears about the ISDS provisions in the Trans Pacific Partnership deal are well-founded. The reality is that there is a sharp uptick in the occurrence of ISDS litigation in developed countries, and even the right wing likes of The Economist have been souring on the process for some time. More>>

ALSO:

Christchurch Red Zone Offers: Fresh High Court Proceedings

Grant Cameron, Solicitor for the Quake Outcasts said “the action seeks judicial review of the Crown’s recent decision to make a fresh offer to purchase properties from uninsured property owners in red zones. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news