Reserve Bank consults on how to improve Māori access to capital

The Reserve Bank of New Zealand is consulting the public on how to improve Māori businesses’ access to capital, which Governor Adrian Orr said was a key step to unlocking the potential of the New Zealand economy.

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The central bank is seeking feedback on its issues paper, Improving Māori Access to Capital, as it aims to raise the productive potential of the economy and encourage the allocation of financial resources in a way that maximises sustainable long-term economic growth.

“The Māori economy is one such area of productive potential, for tangata whenua and Māori business and for the economy as a whole,” Orr said. “There are compelling reasons to design a comprehensive pathway towards a better financial system for all New Zealanders. Putting greater focus on these issues may encourage everyone involved to strive for better outcomes, with no one worse off.”

The issues paper outlines some of the factors that may act as barriers between Māori and specific forms of capital in the financial system and identifies potential pathways for access.

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“The unique nature of some Māori economic activity puts tangata whenua at risk of missing the full benefits of the financial system and carrying unrewarded risk and cost,” Orr said. “Negative outcomes could include rising exclusion, inequality, and the degradation of general wellbeing while we’re also missing out on the positive aspects of growing Māori business for the good of all.”

The Reserve Bank said it will create potential solutions drawing together the research and insights on hand.

“It’s then up to all of us – the private sector, iwi Māori, business, and communities and a broad range of government organisations – to feed into this work and explore the best options to improve access to capital for Māori. When we can do that, Māori business will thrive and that is good for everyone,” Orr said.

A six-week consultation period on the issues paper will start on Aug. 9, with the final report expected to be released at the conclusion of consultation and work with stakeholders.