Gloriavale has lost its fight to keep banking with the Bank of New Zealand (BNZ) after two years of legal disputes.
In July 2022, BNZ gave notice of its intention to terminate its banking relationship with various companies and entities associated with the Christian Church Community Trust, also known as the Gloriavale Christian Community.
BNZ considered the decision appropriate in light of its internal human rights policy, pointing to the West Coast community’s use of child labour.
Gloriavale claimed it had changed and argued it was unfair for BNZ to abandon it.
The commune attempted to establish alternative banking arrangements but was unsuccessful. Without bank accounts, the leadership said, they could no longer operate.
The dispute has been the source of legal action for two years.
Today, the Court of Appeal ruled that there was no proper basis for requiring BNZ to continue to provide services to the Gloriavale entities.
“If no other bank is willing to accept the Gloriavale entities as a customer, that reluctance cannot be laid at the door of BNZ,” the court said.
“The prejudice to the Gloriavale entities would result from the characteristics of those entities that are perceived by other bankers as relevant to the costs and risk of dealing with them – matters that are within those entities control.”
BNZ assured the court that it would continue to provide banking services to Gloriavale for three months from today.
The Court of Appeal also ruled that Gloriavale must pay BNZ’s court cost. Gloriavale has been approached for comment.
