Banks Seek Change

Press, Volume CVII, Issue 31438, 3 August 1967, Page 22

Banks Seek Change

(N.Z. Press Association) PALMERSTON NTH., August 2,

Bankers were “fed up” with the monetary policies followed by successive Governments in New Zealand during the last 20 years, the research director of the Bankers’ Association (Mr R. O. Smillie) told a meeting of public accountants in Palmerston North last night.

The association was determined to keep up a campaign for the rehabilitation of the banking system and to bring

about changes in monetary policy in the country, he said. “We know there is wide public sympathy for the position the banks have been forced into by Government policies in the post-war period.

“Bank lending is the cheapest money available, and the system is efficient. It is wrong that people should be forced

to go to other sources when the banks, suit them best” Of the 10 per cent cut in overdraft limits and the slight relaxation announced, Mr Smillie said the Bankers’ Association had told the Government that this restriction was “not good monetary policy” and that there were already too many direct controls. The impact created by the restriction had been very uneven and affected a minority of bank customers. Some customers had found themselves in a difficult situation because of the reduction. These could now be helped—if they were creditworthy and their situation justified it. Generally the scope for new lending was very limited.