Mixed reaction to Maori bank concept

A proposal for a Maori bank has been met with a mixture of wholehearted approval and doubt.

The concept was put to Maori financial leaders yesterday by the Aotearoa Credit Union at a seminar in Rotorua.

He Korowai Trust chief executive Ricky Houghton, from Kaitaia, said existing banks treated many Maori like second-class citizens.

"Especially in the Far North where 80 per cent of people are on benefits. Banks don't care about them because their money goes in and then comes straight out again."

Mr Houghton urged those at the seminar to get behind a Maori bank.

"We have been searching for something like this. I want to be one of the first to support it," he said.

Seminar member Tim Bertram said he "wept" when he saw Maori wasting away money from treaty settlements.

"If only they had a Maori bank to run their money for them. It's the most wonderful possibility that is before Maori today," he said.

Riria Te Kanawa said she supported the idea as long as high standards were set to ensure it competed with other major banks.

However, KPMG banking and finance group chairman, Andrew Dinsdale, had doubts about whether the concept would get off the ground.

Before registering a bank, the Reserve Bank required great expertise and experience and set very strict guidelines -- which Mr Dinsdale felt the South Auckland-based Aotearoa Credit Union could struggle with.

"I have got no reservations about the concept of a credit union, and it's proven to work in places such as Kaitaia. But it's very different to move from a credit union to a registered bank," he said.

"They are talking about low interest loans. You have got to make money, and low interest loans don't make a profit."

Aotearoa Credit Union chairman, Selwyn Screen, said a Maori bank would ensure Maori reaped the benefits of large treaty payments, rather than profits being made by mainstream bank shareholders overseas.

- DAILY POST (ROTORUA)