Finsec, the union representing workers in the finance sector, says that New Zealand banks are still making excellent profits and can and should be doing more to help the local economy. These comments come in the wake of banks pulling out of a $2 billion equity fund, which was to have been co-sponsored by banks and the Government to take shareholdings in struggling companies.

According to the New Zealand Herald a banking industry source blamed the collapse on the Government, saying “Treasury officials got cold feet over the risk that the scheme would have over-extended the banks when banking sector stability was crucial.”

The annual KPMG banking survey showed the banks increased their underlying profits by 5.1 per cent in the past year. “It is remarkable these profit levels occurred at a time when the economy was souring. That shows the banks are well positioned and well insulated to be doing more to help out the overall economy,” said Finsec Campaigns Director Andrew Campbell in a press release.

The banks can afford to be doing more for the local economy. It is scandalous that the government is not requiring them to help out people who lose their jobs or provide firms access to funding – especially while they are receiving tax payer support that is underwriting their business and supporting their profits,

Finsec is advocating banks give a 12 month mortgage holiday for those that lose their jobs and participate in the shared equity fund as well as “ensuring bank staff stay in work and get a fair wage rise,”