A new approach
NZBA is proposing a new principles-based approach to the Code of Banking Practice. The current Code is prescriptive, and largely duplicates bank terms and conditions.
A principles-based approach is intended to:
- make the Code more accessible to bank customers
- avoid duplicating customer contracts
- provide the Banking Ombudsman with more flexibility in determining what good banking practice is
- 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.
The draft Code and the current Code
The proposed draft Code can be found here
The current Code can be found here
Five principles of good banking practice
The draft Code sets out five principles to guide good banking practice. Under the new 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.
Public submissions on the proposed Code closed on 26 July 2017.