A banking expert believes New Zealand First's move to fine banks for withdrawing services on environmental or social grounds misunderstands the situation. 

MP Andy Foster has introduced a bill to the members' ballot in a bid to ensure banks make withdrawal decisions on a purely commercial basis, with fines of up to half a million.  

Massey University banking expert Claire Matthews told Andrew Dickens the move is not surprising but misses the point of why banks are making these choices.  

She says the banks decisions are based on risk management, which under the introduced legislation would still be possible, meaning it won't make the difference the party's looking for. 

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