Federated Farmers Take Banking Issues to New Zealand Parliament

The Federated Farmers have consolidated a comprehensive submission addressing the current state of rural banking in New Zealand, which reflects the opinions of over 1100 farmers across the nation.

Richard McIntyre, banking spokesperson for Federated Farmers, expressed that farmers have long felt neglected and treated as substandard clients within the banking system. 'It's time for that to change, and we're heading to Wellington on Wednesday to demand a fair deal from the banks,' McIntyre stated.

McIntyre highlighted the disconnect between rural and urban banking, where urban borrowers enjoy competitive rates while rural businesses face higher costs and fewer options. He emphasized that the inquiry into banking practices, which the government announced last June, must culminate in significant, enduring transformations.

Federated Farmers' submission serves as a roadmap, not merely a list of grievances, and aims to rectify unfair banking practices. One critical issue is capital requirements, with New Zealand holding some of the most stringent rules globally. These standards result in rural borrowers paying substantially more in interest rates than they should, a disparity Federated Farmers is determined to address with policymakers.

Furthermore, there is concern about banks potentially de-banking businesses that do not align with their climate objectives. An example is the BNZ's announced plan to cease financing rural petrol stations by 2030.

Despite these challenges, McIntyre remains hopeful about the outcomes of the parliamentary inquiry and the positive potential changes it could bring for the farming community and the broader rural economy.