In a statement, ANZ said it never planned to sell off its farm debt. But it was approached by foreign would-be buyers of farm loans.
"ANZ is the largest agri-lender in New Zealand and our group board has said it wants us to stay the largest," the statement said.
"While some overseas hedge funds have been approaching New Zealand banks (including ANZ), we have chosen not to pursue the path of divestment."
ANZ has 28.5 per cent of this country's total rural lending on its books.
Government figures put that total lending at nearly $63 billion, up 270 per cent compared with 20 years ago.
In a report in May, the Reserve Bank indicated some of this debt could be vulnerable.
"Around a third of dairy debt is held in farms with high DTI (debt to income) ratios," the bank wrote.
"Many of these farms struggle to make profits and repay debt, despite good milk prices. This is particularly concerning as the costs of the dairy sector may rise in response to longer-term challenges, such as environmental and climate change policies."
A lot of farm debt would have been negotiated in the past, traditionally, with local bank managers.
By contrast, hedge funds are large, impersonal institutions, representing multiple investors, which operate globally and take advantage of volatility such as changing interest rates or currency values.
- RNZ
