farm debt mediation scheme
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PHOTO: KEVIN STENT/STUFF Lyn Berry lost her Marlborough vineyard to the bank a decade ago, and has started a petition to try and get Parliament to hold a banking inquiry.

Lyn Berry lost her Marlborough Vineyard after the global financial crisis and is worried history will repeat if banks are not forced to work with farmers struggling with debt.

The power banks have to foreclose on farmer loans when the going gets tough will be curbed by a proposed new law.

The bill calls for a farm debt mediation scheme aimed at levelling the power imbalance between banks and farmers, ahead of a requirement for banks to bolster their capital reserves.

The Reserve Bank is pushing for banks to build up their capital reserves to make them less likely to fail in a financial crisis.

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