Source: New Zealand Government
The Government has accepted or partially accepted all the recommendations made by the Finance and Expenditure Committee’s inquiry into banking competition.
The inquiry examined the state of banking competition with a focus on business and rural banking, as well as lending to Māori entities.
Nicola Willis says the select committee’s findings echo many of the findings of the Commerce Commission’s report on personal banking services last year.
“The inquiry’s findings highlighted concerns about the high levels of banking profitability and market concentration, barriers to entry for other players, and regulatory settings.
“The Government has been progressing all the recommendations in the Commerce Commission’s report. They include giving Kiwibank’s parent company the go-ahead to raise additional capital and requiring the Reserve Bank to place greater emphasis on banking competition across a range of policies and actions.”
Scott Simpson says that in response to the select committee inquiry, he will be writing to banks encouraging them to:
standardise financial information and use digital technologies to help customers compare products and loan options across banks; and
disclose profitability on transaction, on-call and savings accounts.
“I will also be writing to the Financial Markets Authority asking it to consider broadening its regulatory sandbox trail which allows firms to test innovative products and services in a controlled environment.
“Work is also underway on a single licensing model to cut red tape for innovative financial services.
“This Government is committed to driving competition in the banking sector, encouraging innovation and delivering a better deal for consumers.
“Monitoring and reporting on the committee’s recommendations will be coordinated by the Treasury.”
