Journalist 'shocked' by Rotorua bank hostage situation, says man tried to swap places with wife held inside

A witness to yesterday's hostage drama at a Rotorua bank says he saw a "visibly distressed" older man offering to take the place of his wife - a long-time employee at the bank.

Kereama Wright, a journalist from Aukaha news, was on his way to collect his child from kohanga just before 4pm yesterday, when he received a message from a friend telling him there was a gunman at the city's BNZ branch in Amohau Street.

"I was a little bit shocked because this sort of thing doesn't happen in Rotorua."

Police have since confirmed the man was not armed.

Wright said he headed for the city's central mall and found police swarming the area, with stores in the area locked down.

"When I arrived, I saw a fair-skinned man walking around inside the bank, appearing to give instructions to some of the - most of them were wāhine - inside the bank."

Wright left the scene to collect his child but said that on returning about 20 minutes later, cordons had been put in place and a police negotiator who appeared to be in conversation with the alleged gunman could be seen at the entrance to the bank.

A "visibly distressed elderly man" whose wife was one of the hostages inside the bank, was speaking to police in an effort to swap places with her, Wright said.

"His wife had been working at BNZ for many years and he was really upset."

Wright said the man had received text messages from his wife as the incident unfolded, telling him there was a man with a gun and that those in the bank were scared.

"He was really scared for the welfare of his wife and he wanted to talk to the offender man-to-man and ask him to let his wife go ... it was very sad to see."

Following discussions with the police negotiator to defuse the situation, Wright said the hostages came calmly out of the bank one by one about an hour after the incident began.

The alleged offender followed a few minutes later with his arms raised and lay on the ground before being "swamped by armed police" and arrested, Wright said.

A man is due to appear in court today, charged with kidnapping.

Cordons were removed from the area last night but the BNZ will remain closed today.

Uptick in abusive behaviour leaves bank employees fearful - union

The union representing bank employees says staff are feeling increasingly anxious and unsafe at work.

First Union's finance sector organiser, Callum Francis, said violent and abusive behaviour towards bank staff was becoming more common.

He said employers must listen to frontline workers and give them what they need to feel safe.

"One problem that we do hear from a number of our workers in the banks is that they're short-staffed; they don't have enough people to make them feel comfortable - to provide that extra security and that help if somebody needed it."

Callum Francis said First Union had raised safety issues with banks repeatedly over the past year because of the behaviour their staff were dealing with.