Govt to remove personal liability for bank directors
The government is also changing the law to lessen the liability of financial institutions which fail to provide information or which provide incorrect information – there is a class action suit in progress against ANZ Bank New Zealand as ASB for exactly those failings.
“Whilst it is totally appropriate that lenders should be accountable for poor lending practices, extending these requirements at a personal level is a step too far,” Bayly said.
“Thankfully, partly due to the decision to introduce a licencing framework, cabinet has agreed these are no longer appropriate. I expect this change will lead to less conservative lending practices.”
Bayly acknowledge the class action suits currently underway, saying the two banks' failings “in some cases these are largely of a technical nature and unlikely to have resulted in financial loss to the borrower,” he said.
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