Select committee considers bill to ban ‘woke’ banks from dumping customer they don’t like

Federated Farmers has welcomed proposed legislation that will stop banks from refusing to provide services on environmental grounds, but Lawyers for Climate Action says the planned reform is “unworkable” and risks exposing financial institutions to litigation from disgruntled customers.

Westpac NZ chief executive Catherine McGrath questioned whether the proposal, put forward in a private member’s bill from NZ First MP Andy Foster, was even needed, saying “we don’t see the systemic concerns that this bill is trying to address”.

The Financial Markets (Conduct of Institutions) Amendment (Duty to Provide) Amendment Bill – dubbed the “woke banking bill” – is being examined by Parliament’s Finance & Expenditure Select Committee.

It is aimed at preventing “debanking”, when a financial institution refuses to provide services to customers on political grounds, including “murky environmental, social or governance (ESG) moralising”.