NZBA said banks know the role farmers play in the economy and that it’s important they succeed.
The New Zealand Bankers’ Association today welcomed the government’s announcement that it will introduce a bill to set up a farm debt mediation scheme.
“Banks are responsible lenders that take a long-term view to the rural sector. They know the vital role farmers play in the economy and that it’s important they succeed,” says New Zealand Bankers’ Association deputy chief executive Antony Buick-Constable.
“Rural bank managers work closely with farmers facing financial challenges on a case-by-case basis to see how they can work together through any issues. This was the situation during the last dairy downturn and the current mycoplasma bovis outbreak.
“The industry supports farm debt mediation to provide clarity and another option for farmers.
“Last year NZBA began developing an industry-led farm debt mediation scheme but it was overtaken by the government’s proposed initiative, which we support in principle.
“We look forward to seeing the Bill and to getting a mediation scheme in place.”
ENDS
“International money transfers made from a banking app or by internet banking usually include a fee to cover other overseas bank costs. And there will also be an exchange rate conversion fee if sending money in a currency other than New Zealand dollars.”
The Federated Farmers press release has NZBA CEO Roger Beaumont saying NZBA analysis shows the Reserve Bank’s proposal to “almost double” capital requirements will have a net cost to the New Zealand economy of $1.8 billion a year.
Ministry of Business, Innovation and Employment
New Zealand Bankers’ Association chief executive Roger Beaumont, who is pleased to see most farmers remain satisfied with their bank, said he expects RBNZ’s capital requirements proposal to a net cost to the New Zealand economy of $1.8 billion a year.
Federated Farmers cited the NZ Bankers’ Association’s estimate that the Reserve Bank’s proposals would cost the economy $1.8 billion.
NZBA has denied suggesting that the government should ever bail out the banks, saying that instead an independent report merely speculated that in the event of a bank failure, a government would be reluctant to allow customers to take a haircut on their deposits.
The New Zealand Bankers’ Association and the Banking Ombudsman agree with the Reserve Bank that disclosure of banks’ breaches of their conditions of registration should be limited to “material” breaches only.
The industry supports a farm debt mediation to codify many of these processes and provide clarity and an alternative support option for farmers.