Press release
20 June 2007

New Code Of Banking Practice Unveiled

Code features new section on Internet Banking

The New Zealand Bankers' Association has unveiled details of the new edition of the New Zealand Code of Banking Practice, effective from 1st July 2007.

The Code, which is reviewed every 3 years, is intended to promote good banking practice and maintain positive relationships and communication between member banks of the New Zealand Bankers’ Association and their customers.

This year the Code includes a refined section on the provision of guarantees and other securities clarifying that the providers of these securities have the right to request that the amount of their liability be limited.

The 2007 Code also features an entirely new section on Internet Banking, a response to widespread customer usage of the Internet since the last Code was published.

Particulars of the Internet Banking section include:
• Assurances of security provided to customers in respect of each banks’ Internet Banking systems and technology.
• A clear statement of liability setting out the circumstances in which either member banks or their customers will be responsible for losses.
• A commitment to providing customers with up to date information on access to Internet Banking, authentication and security as well as information about protecting themselves from on-line fraud and scams.

New Zealand Bankers’ Association CEO, Alan Yates says “The Code of Banking Practice records good banking practices, including what all banks agree to preserve as minimum standards. The inclusion of an online section reflects how banking has developed over the last 5 years and ensures that customer rights and responsibilities keep pace with this.”

He continues “Online banking has changed the way we live and manage our money. In 2006 New Zealanders made over 80 million online transactions so it makes sense to update the Code to reflect this activity.”

The revised Code will be available in all member bank branches and online.

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