“You can be confident that the person you’re talking to is not being incentivised in any way to sell you a product or service.”
“Banks want to treat their customers fairly. It’s good for customers and good for business.”
Treasury and the Reserve Bank of New Zealand
NZBA said that it supported openness and transparency and was pleased the central bank had accepted that only actual material breaches be published.
Treasury and the Reserve Bank of New Zealand
In its submission on the Farm Debt Mediation Bill presented to the Primary Production Select Committee the Bankers Association said it supports the Bill, which has the potential to shorten the amount of time taken to get a resolution and avoid the need for creditor enforcement.
New Zealand Bankers’ Association chief executive Roger Beaumont suggested the policy was needless as New Zealand currently has “one of the fastest bank switching processes in the world”.
The Bankers’ Association highlighted in its submission: “continual discussions and negotiations between lenders and with their farming customers is the norm in a banking relationship and in the event there is a dispute that warrants having a formal process with an independent “circuit breaker” involved, members would actively encourage mediation (regardless of the statutory scheme)”.
New Zealand Bankers’ Association chief executive Roger Beaumont confirmed that banks might shorten mortgage for properties that are at risk. He also raised the issue of insurance, saying without insurance banks won’t approve a home loan.
Primary Production Committee