Code of Banking Practice Review

The New Zealand Bankers’ Association (NZBA) is reviewing the Code of Banking Practice.

 

A fresh approach

NZBA has developed a fresh high level principles-based approach to the Code of Banking Practice. The previous 2012 edition was prescriptive, and largely duplicated bank terms and conditions.

The fresh approach:

  • makes the Code more accessible to bank customers
  • avoids duplicating customer contracts
  • provides the Banking Ombudsman with more flexibility in determining what good banking practice is
  • keeps 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.

The draft Code and the current Code

The draft Code can be found here (June 2017)
The current Code can be found here

Five principles of good banking practice

The latest edition of the Code sets out five principles to guide good banking practice. Under the Code banks promise to:

  • Treat their customers fairly and reasonably
  • Communicate with customers clearly and effectively
  • Respect customers’ privacy and confidentiality and keep their own banking systems secure
  • Act responsibly if they offer or provide customers with credit
  • Deal effectively with customer concerns and complaints.