BNZ profit of $657 million proves lending regulation needed

This week Finsec called on the government to impose regulation to promote ethical lending in exchange for giving wholesale lending guarantees to banks in light of the BNZ’s $657 million profit announced this week, a 9% increase over last year.

“If the BNZ and other banks want tax payers to underwrite their borrowing, then customers need and deserve guarantees that lending practices will be fair and ethical”, said Andrew Campbell, Finsec Campaigns Director.

“The BNZ has increased its referral targets for tellers by 50% and for customer services officers by 66.6%. That means BNZ customers will be coming under more pressure to get into debt or take on other bank products,” said Campbell.

“The $106 million increase in bad debt provisions indicates that potentially inappropriate lending is already occurring.  BNZ staff have said the increase in targets forces them to act in ways that may not be in the best interests of their customers,” said Campbell.

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