logo
Examining Māori Access To Capital

Examining Māori Access To Capital

Scoop14-05-2025
Press Release – The Reserve Bank of New Zealand
The Bulletin highlights barriers specific to Mori, including legislative constraints that make it challenging to use Mori land as loan collateral and low trust and awareness between Mori and banks.
The Reserve Bank of New Zealand – Te Pūtea Matua has published a Bulletin article which discusses the barriers Māori face in accessing capital that may be associated with market failures or imperfections.
The Bulletin highlights barriers specific to Māori, including legislative constraints that make it challenging to use Māori land as loan collateral and low trust and awareness between Māori and banks. Māori are also more likely to live in rural areas and face market failures common to rural credit markets.
The market failures that tend to be associated with these financing gaps are all forms of information failure or asymmetry.
Assistant Governor Simone Robbers says that Māori face persistent barriers to accessing capital, many of which stem from market failures or imperfections.
'These barriers contribute to ongoing financial exclusion which has broader economic consequences. It can weaken the financial system's ability to allocate capital efficiently and limit the potential of the New Zealand economy, especially given the growing significance of the Māori economy,' says Ms Robbers.
Various initiatives have been introduced to address information gaps and improve access to capital for Māori. These include better data collection, cultural training, and financial literacy programmes. Steps have also been taken to facilitate lending on Māori land and develop tailored bank products, though uptake remains low.
Although the Māori economy has grown significantly and business financing gaps between Māori and non-Māori appear to be narrowing, further efforts are needed to completely close the gap and unlock the full potential of the Māori economy.
Improved data collection, innovations in the financial system, AML/CFT reforms, and further legislative changes have been identified as ways that could ease barriers and support development in a way that recognises and promotes the cultural and economic significance of Māori.
'Identifying where market failures exist is important for informing targeted and effective public policy interventions that support more inclusive and efficient financial outcomes,' says Chief Economist Paul Conway.
This research builds on the Reserve Bank's 2022 'Improving Māori Access to Capital' Issues Paper. It continues our commitment to exploring and addressing structural challenges in the financial system in line with our Financial Policy Remit and 2024 Letter of Expectations.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Community issues in focus
Community issues in focus

Otago Daily Times

time3 hours ago

  • Otago Daily Times

Community issues in focus

Community advocacy was top of mind at the West Harbour Community Board meeting, held last Wednesday at Port Chalmers Town Hall. At its public forum, the board heard a presentation from local resident Ms Wilson, who complained about excess lights used at night by Port Otago and asked for board support. The board also heard from Port Chalmers residents Mike Webb and John Innes about a local bus shelter that had been removed earlier in the year. Local musician and co-organiser of the Lines of Flight musical festival Peter Porteous spoke in support of a funding application from the Metonymic Trust for $700 towards the hire of Port Chalmers Town Hall for the event in October. The festival had been running two-yearly for the past 25 years, featured many local musicians and attracted people from around the world, he said. Later in the meeting, board members voted unanimously to grant the requested $700. Bus routes Otago Regional Council regional planning and transport general manager Anita Dawe attended the board meeting to speak about the Regional Transport Plan, which was adopted in June. Directives from the government had resulted in the team investigating a zoning model and small rises in fares — from $2 to $2.50 for adults, and from free to $1.50 for children. In response to questions from board members, Ms Dawe said there would not be a return to very high fares, but there were few "levers" for the council to pull to cover bus service costs. Planning was also well under way in advance of cruise ship season. Scholarship The board considered an application for a scholarship from emerging young Māori leader Ngāki Kiore for $500 towards attending the Ngā Manu Kōrero national speech competition in September. The board voted to grant her the $500 requested. General The board voted to continue advertising in the Rothesay News , at a cost of $1500 for the year. The column features board members' contact details. In discussing the Community Plan, board member Barbara Anderson raised concerns over lack of progress from the board on the plan. She also spoke about communication with the community during emergencies. In the subsequent discussion, it was highlighted that official information had to come from the bunker in an emergency to be shared, and there were changes under way. Following board reports, Ms McErlane congratulated Ms Goldsmith and board member Duncan Eddy on their efforts in organising the recent West Harbour Community Awards. Information panels Cr Mandy Mayhem shared progress on the creation of six panels highlighting historic sites and events for display around the Port Chalmers area, and requested an additional $78 for the cost of the sixth panel — this was granted. WEST HARBOUR COMMUNITY BOARD NOMINEES • Duncan Eddy • Jarrod Hodson • Jenny Kendrick • Ange McErlane • Matthew Newton • Barbara Olah • Marion Poole • Wayne Sefton Postal votes need to submitted by Tuesday, October 7. After this date, votes must be returned to the council's secure ballot boxes before noon on Saturday, October 11.

ASB profit dips as staffing rises, $33m set aside for customer compensation
ASB profit dips as staffing rises, $33m set aside for customer compensation

NZ Herald

time16 hours ago

  • NZ Herald

ASB profit dips as staffing rises, $33m set aside for customer compensation

She said the increase in staffing levels wasn't a one-off that would be unwound as projects were completed. Rather, the investment was a 'continuation of a theme you've seen with ASB over the years'. ASB's expansion comes as the Australian Financial Review reports Westpac Group made 790 staff redundant in the past two months, and ANZ's new group chief executive talking up the need for a slimming of the company and more efficient ways of working. Neither Westpac nor ANZ would tell the Herald whether jobs would be cut in New Zealand. 'Westpac NZ operates as a separate entity to Westpac's Australian operations with a unique culture that supports our New Zealand customers and employees, however we welcome their focus on change and transformation,' a Westpac spokesman said. 'We continually review how we operate, and the composition of our workforce changes periodically as we adapt to meet customer demand and business requirements. 'We'll be able to provide a full view of any movements up or down at our full-year results in November.' Coming back to ASB, the other expense it flagged was A$33m ($36.18m) in customer 'remediation provisions'. Shortt declined to elaborate on why the bank had put money aside to potentially reimburse customers for a mistake, or various mistakes, the bank has made. She said it was standard practice for the bank to notify regulators if it believed there was a breach, before looking to rectify the issue and pay out customers. An A$33m payout to customers would be material for ASB. Shortt clarified this provision was unrelated to the class action, currently before the courts, taken against ASB and ANZ for disclosure breaches dating back to the mid-2010s. ASB increased its mortgage lending by 7% and its business and rural lending by 2% in the year to June. The value of its interest-bearing customer deposits also rose by 3%. ASB's net interest margin inched up by 4 basis points to 2.27%, as it increased margins on its home lending. Shortt said ASB customers hadn't shifted their money around since the Reserve Bank-administered Depositor Compensation Scheme became operative on July 1. The scheme ensures up to $100,000 per depositor, per institution is guaranteed. This means that if someone had $200,000 of savings at a bank that collapsed, they would get $100,000 under the scheme. Shortt said the Government hadn't consulted with ASB on the possible introduction of a new bank tax or levy, further to Finance Minister Nicola Willis seeking advice from government officials on this. Jenée Tibshraeny is the Herald's Wellington Business Editor, based in the Parliamentary press gallery. She specialises in government and Reserve Bank policymaking, economics and banking.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store