Code of Banking Practice Review: call for public submissions

The New Zealand Bankers’ Association today called for public submissions on its review of the Code of Banking Practice.

“We’re proposing a new-look, principles-based Code,” says New Zealand Bankers’ Association chief executive Karen Scott-Howman.

“The current Code is quite prescriptive, and has largely come to duplicate bank terms and conditions. A principles-based approach is meant to make the Code more accessible to bank customers and avoid duplicating customer contracts. It will also provide the Banking Ombudsman with more flexibility in determining what good banking practice is.”

“This approach will help keep the Code up to date in the context of changes to the way we’re banking, and new obligations for banks under consumer law and regulations.

“In drafting the new Code we have drawn out the good banking practice principles underlying the current Code and set out what banks will do to give their customers a positive banking experience.”

The five principles set out in the draft Code are that banks will:

  • Treat customers fairly and reasonably
  • Communicate with customers clearly and effectively
  • Respect customers’ privacy and confidentiality and keep their banking systems as secure as they can
  • Act responsibly when offering or providing customers with credit
  • Deal effectively with customer concerns and complaints.

“This fresh approach to the Code aims to support positive relationships between banks and their customers in a way that everyone can understand,” says Scott-Howman.

NZBA welcomes public submissions on the proposed Code until 26 July. Information on the submission process is available at:

http://www.nzba.org.nz/consumer-information/code-banking-practice/code-banking-practice-review-request-public-submissions/

The draft Code of Banking Practice is available at:

http://www.nzba.org.nz/consumer-information/code-banking-practice/code-banking-practice-review-request-public-submissions/draft-code-banking-practice/

Further information about the draft Code of Banking Practice is available in these FAQs at:

http://www.nzba.org.nz/consumer-information/code-banking-practice/code-banking-practice-review-request-public-submissions/faqs-draft-code-banking-practice/

ENDS