Monetary policy review should examine banks’ behaviour

Thursday 10 May 2007, 5:05PM
By Finsec

Parliament’s review of monetary policy needs to look at the behaviour of New Zealand’s major banks if it is to find alternative ways of curbing inflation, says Andrew Casidy, the General Secretary of the bank workers’ union, Finsec.

Now that Parliament's Finance and Expenditure Select Committee has agreed to hold a review of monetary policy it needs to ensure its brief is wide enough to come up with new solutions that will take pressure off customers and homeowners.

“The current behaviour of New Zealand’s major banks is putting increasing pressure on customers, homeowners and the New Zealand economy” says Casidy.

“We would like to see the Select Committee consider the pressure banks place on their staff to sell ever-increasing amounts of debt products. This, combined with the huge record profits that banks are sending offshore, means customers and homeowners are struggling, even when our economy performs well.”