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Speaker 1: Now it's time for banking. The Prime Minister has joined

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Speaker 1: the Shane Jones chorus of banking critics, suggesting the government

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Speaker 1: will soon look to make banks lend to customers that

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Speaker 1: they don't want to lend to.

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Speaker 2: It's utterly unacceptable, utterly unacceptable, and that's what we've got

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Speaker 2: to change. And we've made it very clear in our

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Speaker 2: comments and I hope the bank CEOs are noticing our language,

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Speaker 2: which is you've got to finance things that Kiwis need

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Speaker 2: and not financing service stations or coal companies. Those are

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Speaker 2: things that the Zealan needs. And so whether it's been

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Speaker 2: the benzed On service stations or any of the other banks,

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Speaker 2: their job is not politically posturing. Their job is to

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Speaker 2: finance the things that Kiwis need. They don't want this

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Speaker 2: political posturing going on bn Zen, you know they want

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Speaker 2: to not fund service stations in provincial New Zealand for example. Well,

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Speaker 2: we've got two to three percent electric vehicle penetration at

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Speaker 2: the moment. It ain't going to change in a hurry,

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Speaker 2: and frankly that's not their decision.

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Speaker 3: Now.

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Speaker 1: The Prime Minister is using some rhetoric here, but he

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Speaker 1: hasn't actually said he's going to change the law. However,

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Speaker 1: there are some who think you might be edging towards it.

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Speaker 1: If Shane Jones has a private member's bill, will that

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Speaker 1: be enough? Clear Matthews? Is the massive university banking expect clear,

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Speaker 1: good evening plan? Can the government force banks to Can

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Speaker 1: you regulate and say you have to take this customer

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Speaker 1: or that customer?

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Speaker 3: Absolutely, if the government wants to put regulation in place,

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Speaker 3: that is an option available to them. But I would

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Speaker 3: caution them to think about what are the unintended consequences

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Speaker 3: of doing that.

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Speaker 1: We're worth very little to them, aren't we. I mean,

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Speaker 1: would they do you think they'd pull out if we

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Speaker 1: said you have to you have to lend to every

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Speaker 1: petrol station, every dairy farmer, every mine that they would

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Speaker 1: throw their weight around.

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Speaker 3: Absolutely. If the government starts telling the banks what they

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Speaker 3: have to do, then it is very much open to

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Speaker 3: the banks to say, actually it's too complicated. You're dictating

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Speaker 3: too much what we can and can't do. And therefore,

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Speaker 3: you know the reality is the Zellan market is not

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Speaker 3: that important to us. We're going to withdraw it, and

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Speaker 3: good luck to you in terms of getting the economy

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Speaker 3: operating without banks.

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Speaker 1: Why isn't there a bank that turns up in a

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Speaker 1: situation like this and says, hey, I'll lend to those people.

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Speaker 3: Well, I think that actually tells you about the desirability

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Speaker 3: of lending to them, because if there was a desirability

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Speaker 3: of leading to them, somebody would do just that. One

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Speaker 3: of the issues is that while this government appears to

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Speaker 3: be somewhat more in favor of fossil fuels and those

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Speaker 3: types of energy sources, we've seen just recently a government

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Speaker 3: that was trying to move away from that. And so

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Speaker 3: the risks that the bank's face if they get too

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Speaker 3: involved in providing lending and banking services to those types

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Speaker 3: of entities is that in three six years time, another

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Speaker 3: government comes in and says, actually we're going back to

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Speaker 3: what the labor government was doing in their last term.

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Speaker 3: We're going to move away from fossil fuels, and the

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Speaker 3: banks could end up with a lane duck customer and

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Speaker 3: considerable ross.

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Speaker 1: Could the government regulate to say just on Kiev Bank

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Speaker 1: and say you have to take you know what you

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Speaker 1: have to be basically the orphanage for all those who

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Speaker 1: are rejected by the big banks.

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Speaker 3: Absolutely, and to some extent that's one of the things

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Speaker 3: that Keevy Bank was talked about being not just for

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Speaker 3: businesses but for all sorts of customers. But again, you've

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Speaker 3: still got the risk that if in doing that, okay,

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Speaker 3: Kevy Bank may not move out of the country because

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Speaker 3: obviously they'll continue to operate, but there's a risk to

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Speaker 3: the government and that if it all turns to custom

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Speaker 3: that they're going to have to bail out Kivi Bank.

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Speaker 3: It's also the risk that well, not so much the risk,

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Speaker 3: but there's a question as to where the key bank

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Speaker 3: has the facility and the resources to be able to

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Speaker 3: actually take on many of those customers in the short term.

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Speaker 1: The Prime Minister says that the banks are listening to

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Speaker 1: his rhetoric. Do you think they do pay attention? When

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Speaker 1: I mean the thing is it's not just to production

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Speaker 1: that's been Nichola Willis. Before that, it was just Cinda

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Speaker 1: Adourn and Chris Hipkins and anyone who's in power just

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Speaker 1: sort of bashes them with a big stick in the media,

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Speaker 1: almost as like a part of national cathartic pastime. Do

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Speaker 1: you think they care?

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Speaker 3: Oh, absolutely, they care, and they pain in close attention

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Speaker 3: to what was being said and they will be considering

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Speaker 3: their response. So I'm confident that they are listening, that

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Speaker 3: they are taking notes, but their response may not be

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Speaker 3: the response that the government is looking for.

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Speaker 1: Clear Matthew's banking expert MESSI University thinks, So much of

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Speaker 1: Your Time. For more from Heather Duplessy Allen Drive, listen

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