Tuesday, 12 November 2024 12:55

Time to reset

Written by  Milking It

OPINION: New Zealand needs a rethink about how banks allocate capital.

The founding director of NZ Agri Brokers, Andrew Laming, reckons the banking structure massively favours lending to housing, at the expense of the productive sectors, particularly agribusiness.

Between 2018-2024, lending to housing grew 45.54% while lending to agri grew 3.44%.

He says, put plainly, over the last 6 years, the main banks collectively advanced an extra $11 billion to housing and just $2 billion to agri.

"These structural issues also make lending to agri (& business) more expensive (the margins are almost double in agri on average and in some cases can be higher), even though agri lending losses are actually very low. This is a massive fiscal drag on the NZ productive sectors."

A shake-up of the banking sector's priorities is long overdue!

More like this

Carbon tax

OPINION: A group of University of Auckland academics claim a carbon tax is the most effective way for New Zealand to cut emissions while supporting a stable economy.

Farmer fury

OPINION: The new Labour Government in the UK is facing the wrath of farmers. Last week thousands of farmers and their supporters converged in London protesting changes to inheritance tax for farmers announced in the Budget.

Outflanked

OPINION: Greenpeace tried its best to disrupt Fonterra’s annual meeting at a hotel in New Plymouth earlier this month, but they were outflanked by a formidable team of Fonterra staff, security officers and Taranaki police.

Koru-koi

OPINION: Call it what you want, a hikoi, a car-koi or a koru-koi, the recent protest march against Act's Treaty Principles Bill has been exposed now for what it was  - a publicity stunt for and by the Maori Party.

Bank reset

OPINION: Adding to calls to get banks to 'back off', NZ Agri Brokers director Andrew Laming has revealed that the banking structure massively favours lending to housing, at the expense of the productive sectors, particularly agribusiness.

Featured

No bird flu on second farm

Biosecurity New Zealand says test results to date from a small free-range layer chicken farm near Dunedin are negative for avian influenza.

No disease on other Mainland Poultry farms

Biosecurity New Zealand has reported no signs of disease on other chicken farms operated by Mainland Poultry in Otago, however testing and monitoring work continues.

National

Net zero pilot farm success

A net zero pilot dairy farm, set up in Taranaki two years ago to help reduce on-farm emissions, is showing…

Machinery & Products

Claas offers new cylinder option

Renowned as market leaders in the self-propelled forage harvester sector, Claas has used its experience of chopping a wide range…

Safer feeding for dairy cows

Cows ingesting metal objects in conserved feed is typically going to end in tears, quite often with a trip to…

BA Pumps expand

Cambridge based BA Pumps & Sprayers, specialists in New Zealand-made spraying equipment, has acquired Tokoroa Engineering’s product range, including the…

» Latest Print Issues Online

Milking It

Carbon tax

OPINION: A group of University of Auckland academics claim a carbon tax is the most effective way for New Zealand…

Farmer fury

OPINION: The new Labour Government in the UK is facing the wrath of farmers. Last week thousands of farmers and…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter