Commerce Commission probes major banks' net-zero pledges, gaining farmer support
The Commerce Commission's move to investigate commitments made by major banks under the Net Zero Banking Alliance is being hailed by farming leaders.
Public submissions are now being accepted by the finance and expenditure committee.
The terms of reference include looking at the price of banking services, with a particular focus on business and rural lending products and the return on capital from business, rural and residential mortgage lending.
The chair of primary production select committee, Mark Cameron is urging the rural sector to make their voices heard.
“Anyone on the back of a rural loan – whether you are a horticulture, sheep and beef, arable or dairy farmer- should make sure their voices are heard,” he told Rural News. “Be part of the process.”
Cameron says the public submission period runs for six weeks.
On rural banking the inquiry will:
- Determine how and to what extent the RBNZ’s capital requirements and credit risk models influence lending rates to agriculture and horticulture businesses.
- Ascertain whether the RBNZ’s approach to greenhouse gas emissions risk, including risk of government policy, has and is likely to result in further increases in lending rates to the agriculture and horticulture sectors.
- Ascertain whether bank environmental and sustainability policies have or are likely to result in further increases in lending rates to the agriculture and horticulture sectors.
- Ascertain whether there is adequate transparency on lending rates for rural, residential, and business lending.
- Access to banking services, including access to cash services, especially in rural areas.
The push for an inquiry into rural banking practices has been led by Federated Farmers, which made a submission to the primary production select committee in May this year. The committee recommended an inquiry.
Farmers claim bankers have been making record profits in the last few years, but those aren’t the only records they’ve been breaking.
Feds’ regular banking surveys are also show that farmer satisfaction with banks is at a record low, and the number of farmers coming under undue pressure is at a record high.
Submissions close before midnight, Wednesday September 25.
For more information, visit https://www.parliament.nz/en/pb/sc/make-a-submission/document/54SCFIN_SCF_FC430602-F4C3-4B04-957D-08DCB036CF74/inquiry-into-banking-competition#RelatedAnchor
