BUSINESS

BNZ increases kiwi debt by $2 billion in just six months

Thursday 10 May 2007, 5:04PM
By Finsec
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"BNZ's 'save the kiwi' campaign may need to focus on those kiwi customers and homeowners who are struggling to get by given that Its own half yearly financial report shows it adding an extra AU$2 billion of debt to the New Zealand economy in just six months," said Bella Pardoe, a National Organiser with the bank workers' union, Finsec.

BNZ's total gross loans and advances increased 5.7% to AU$39 billion in the six months to 31 March 2007. Most of that AU$2 billion increase was increased housing lending (AU$1.45 billion).

"BNZ is the largest bank in New Zealand that still uses its pay system to pressure staff to sell debt products to customers rather than reward customer service," said Pardoe.

"At a time when the New Zealand economy needs to focus on saving and reducing inflationary pressure the BNZ needs to take a leadership role by replacing its performance pay systems with one customers and the economy wants - one that rewards skills and experience not debt."