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Federated Farmers’ new banking spokesman Mark Hooper says they will continue to oppose the Net Zero Banking Alliance as a concept.
Federated Farmers is vowing to keep the big banks accountable for their actions and to continue pushing for meaningful change in the rural lending sector.
This follows the Commerce Commission rejecting a complaint from Federated Farmers that alleged potentially anti-competitive, coordinated, cartel-like behaviour involving five major banks - ANZ, ASB, Bank of New Zealand, Rabobank and Westpac - in their association with the Net-Zero Banking Alliance.
The Commission says it has investigated and found no evidence to support Federated Farmers' complaint.
The five banks collectively account for around 97% of New Zealand's agricultural lending market.
Federated Farmers' new banking spokesman Mark Hooper told Rural News that they are incredibly disappointed by the Commerce Commission's ruling.
"Of course we disagree with their findings, but they've made their decision.
"Federated Farmers are still strongly opposed to the way our banks are behaving and their treatment of farmers. We'll also continue to oppose the Net Zero Banking Alliance as a concept."
However, the federation has no plans to appeal the Commerce Commission decision through the courts. Hooper believes the case has run its course.
"Unfortunately, we're not in a position to appeal the decision either. We're a voluntary membership organisation that runs off the smell of an oily rag.
"Our pockets simply aren't deep enough to go up against these big foreign-owned banks who have endless armies of lawyers, lobbyists and PR consultants.
"Between them they've got over a trillion dollars in assets."
Hooper says Feds will change tack and refocus attention on the parliamentary banking inquiry.
"That's our best bet to hold these banks accountable for their actions and get some meaningful change.
"The findings of that inquiry should be due back in the next month or so, and we're expecting to see some meaningful changes for farmers through that process."
New Zealand Banking Association chief executive Roger Beaumont told Rural News that they were not surprised by the outcome.
"We were not surprised that the Commerce Commission found no evidence to support the allegation because our banks are fiercely competitive and take great care to comply with their competition law obligations," says Beaumont.
ACT MP and rural affairs spokesman Mark Cameron says he wasn't also surprised by the ComCom decision.
"Some may say it was a foregone conclusion of the old boys' club of the dusty board room of the ComCom. Not for me to decide.
"However, the wider question is how was it that so many farmers felt that they were playing on a tilted playing field."
Commerce Commission general manager competition, fair trading and credit Vanessa Horne says the complaint, received last December, alleged the banks were coordinating their agricultural lending policies to align with Net-Zero Banking Alliance strategies and targets. It alleged that, in doing so, the banks were potentially acting anti-competitively, in breach of the Commerce Act.
The complaint also raised concerns that this alleged coordination could reduce farmers' access to capital, resulting in higher borrowing costs and stricter lending terms.
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