December 02, 2022
BNZ responds to Māori banking challenge
The head of Māori business at the Bank of New Zealand says it’s responding positively to a call from the Reserve Bank to change the way banks lend to Māori.
Renata Blair says traditionally banks have been unwilling to accept security over Maori land because of multiple ownership structures.
He says the BNZ decided last year it would lend up to 80 percent on papakainga developments as long as good governance structures and management were in place and homeowners could afford the repayments.
“We’ve kind of leveled the playing field there and also in the agri space, we view it the same as New Zealand general title land along with commercial lending. So it’s been a real success here. What we’re seeing is more capital that is going to flow out to trusts and PSGEs (post settlement government entities) that want to build papakainga housing,” Mr Blair says.
Maori should see banks as good places to get economic information that will help them make what are life changing decisions.