Follow the leaders
OPINION: Farmers are urging Kiwi banks and their overseas parent companies to follow the lead of America's six biggest banks and urgently withdraw from the Net Zero Banking Alliance.
Federated Farmers points out that since the start of December, heavyweights JP Morgan, Citigroup, Bank of America, Morgan Stanley, Wells Fargo and Goldman Sachs have all exited the UN-backed banking alliance.
"These big US banks have seen that their involvement ion the Net Zero Banking Alliance is about to come under huge scrutiny," says Federated Farmers banking spokesperson Richard McIntyre.
"They're leaving in droves because of lawsuits for anti-competitive behaviour within the banking sector and growing political pressure.
"Federated Farmers are now calling on our banks to do the same. They need to do the right thing and withdraw from the Net Zero Banking Alliance - and fast."
In December, Federated Farmers lodged a formal complaint to the Commerce Commission, requesting an urgent investigation into the lending practices of New Zealand banks.
The complaint relates to alleged anti-competitive and coordinated behaviour from the banks, driven by their involvement in the international Net Zero Banking Alliance.
The Net Zero Banking Alliance is an international group committed to aligning their lending, investment, and capital markets activities with net-zero greenhouse gas emissions by 2050.
McIntyre says with five major banks dominating 97.3% of the agricultural lending market in New Zealand, Kiwi farmers should be asking serious questions of their bank managers.
"All five of those banks are either directly members of the Net Zero Banking Alliance or are indirectly affiliated through their parent companies."
