Federated Farmers welcomes Resources and Regional Development Minister Shane Jones’ efforts to hold banks accountable when they stray from their core function - lending money.

Jones is spearheading a member’s bill seeking to ensure financial institutions focus on their legal and social responsibility to provide credit rather than engaging in selective lending based on ideology.

"We’re right behind that. Banks exist to lend, not to lecture," Federated Farmers banking spokesperson Richard McIntyre says.

"It’s the job of elected governments to determine which businesses are lawful -not a handful of banking executives imposing their own moral compass.

"Yet we’re seeing banks decline credit to legal businesses simply because they don’t align with corporate PR strategies."

One threat identified by Federated Farmers is to petrol stations, a vital lifeline for rural communities and isolated parts of New Zealand.

Internal BNZ documents provided to Federated Farmers in late 2024 clearly state there is to be no new lending to petrol stations, and all existing debt needs to be repaid by 2030.

"If banks are unwilling to provide lending to pay for things like upgrades, expansion or compliance, petrol stations will just disappear," McIntyre says.

"It’s ideologically driven nonsense. Do they not think farmers and rural communities will still need petrol in five years?

"If a business is lawful, creditworthy, and can service a loan, then why should it be blacklisted by bank officials who jetted off to Glasgow together to sign an agreement on joint lending criteria?"

Banks hold a social licence, and with that comes an obligation to serve their customers fairly, not to dictate how they should run their businesses, McIntyre says.

Federated Farmers has been at the forefront of the fight against banking overreach in recent years.

The farming advocacy group has led the charge for a government inquiry into banking competition, and has been working with Ministers to push for a review of bank capital requirements that penalise the agriculture sector.

The federation also laid a complaint late last year with the Commerce Commission about the Net Zero Banking Alliance and its potential anti-competitive behaviour.

"We continue to monitor and put pressure on banks to be fair to their customers, and we’re pleased to support Minister Jones’ proposal.

"Banks should focus on banking, so farmers can focus on farming.

"We expect this Bill to include provisions ensuring lending decisions are based on financial criteria rather than emissions targets," McIntyre says.

"Federated Farmers will continue to advocate for rural businesses and fair access to credit, so banking policies support the economy rather than ideology."

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