Jenee Tibshraeny: NZ Herald Wellington business editor on BNZ challenging Gloriavale over use of banking services

Gloriavale has taken a knock in its battle to maintain access to banking services.

BNZ has been trying to close Gloriavale's accounts for the last two years, and the Court of Appeal is allowing BNZ to challenge that injunction.

NZ Herald Wellington business editor Jenee Tibshraeny explains what comes next in this case.

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Episode Transcript

Speaker 1 (00:00):
Now Gloria Vale has taken a knock in the battle
to keep access to banking services. Be and Z has
been wanting to close Gloria vale'sccounts for two years. Now
it's going to be decided at trial. Genative Trainee is
The Herald's Wellington business editor and with us now, hey.

Speaker 2 (00:14):
Jana, hey, Heather.

Speaker 1 (00:15):
Even before it gets to trial, there's going to be
a hearing on an injunction, right, and so these accounts
could close before it even goes to trial.

Speaker 2 (00:23):
Is that right, Yeah, that's right. So B and Z
was upset because the court said that it had to
keep Gloria Vale's accounts open until the issue was dealt
with at trial. So B and Z went to the
Court of Appeal and said, hey, look, we don't agree
with this interim injunction. Now the Court of Appeal will
look at that issue. Depending on what the Court of

(00:45):
Appeal finds, you know, that could end up being quite
a big blow for Gloria Vale. Of course, you know,
like all of us, you need a bank account to
operate in today's society, and Gloria Vale is no different
you know, to the rest of us.

Speaker 1 (00:58):
Yeah, So what's b and Z's him of white ones
to suspend the accuncil shut them down.

Speaker 2 (01:03):
Well, bn Z took action in twenty twenty two after
employment court decision was made that said some former Glory
of Our members who'd been working in the community since
they were six years old should have been treated as employees,
not volunteers. So that prompted bean Z to say, sorry, Glorival,
we want to get rid of you. We don't want

(01:24):
to bank you anymore because you know you're you're set
up doesn't align with our human rights policy. So ben
Z gave Gloria three Glorival three months to find another bank.
Glorivale couldn't find another bank, so you know, the issue
has has ended up in court. Now. The thing here
here that I think it's actually a really interesting case.

(01:46):
A for Gloria Vale, as I said before, it needs
a bank to sort of survive in the modern world.
But b this issue could set a legal president for
other banks in terms of, you know, sort of providing
some clarity around the extent to which banks can choose
who they do business with.

Speaker 1 (02:06):
Takes us to the Nigel Farage case, doesn't it where
the bank just decided they didn't want to do banking
with him and that was the end of that.

Speaker 2 (02:12):
Yeah, there are quite a few examples of this at
the moment, so cryptocurrency traders and businesses, also money remitters,
These are some of the things that have been d banked.
The banks have said, no, you pose too much of
a risk to us, you know, because we don't know
if you're laundering money, for example. That's been a concern

(02:34):
with some of the money remitters and the cryptocurrency people.
So you know, there is this kind of larger debate
at the moment. Can banks choose who they do business with?
And you know, what are the consequences if banks say no, sorry,
we don't want anything to do with you. Is quite
a hot topic.

Speaker 1 (02:53):
Yeah, totally. What happens if Gloria Vale has its accounts
shut down? Do they have to just draw millions and
millions of dollars out and stick it in suitcases?

Speaker 2 (03:00):
Gosh, well, we'd have to wait and see. You know,
this Glory Vala is definitely coming under increasing pressure from
so many fronts at the moment, so you know that
this will be a key issue. And it's lawyers, you know,
argue that these are a vulnerable people and you know
you can't just remove banking services from them, but you know,

(03:22):
beans ed is a private company. If it doesn't want
to give me a mortgage, it doesn't have to.

Speaker 1 (03:27):
Yeah, Jennay, thank you very much. Thanks for running us
through genetive trainee The Heralds Wellington Business editor.

Speaker 2 (03:32):
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Speaker 1 (03:36):
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