27 May 2010

Bolger raises rural lending issue

7:54 am on 27 May 2010

KiwiBank chairman Jim Bolger says he's been told the main Australian-owned banks are not supporting the rural sector.

Kiwibank has submitted its 10-year growth plans and capital requirements to the Government. A move into rural lending is included.

Mr Bolger said on Wednesday he had received an email two days before in Australia from an unnamed, but prominent, person in the rural sector wanting KiwiBank to invest in farming, which it currently does not do.

There's been criticism in the rural sector that banks have tightened up their lending.

The banks deny this, pointing to statistics that show lending has, in fact, increased.