Lack of competition for Aussie banks in NZ

In my recent book “On the Brink” I highlighted the problems of lack of competition in the banking sector. Last night TVNZ News broadcast a report on the mega profits being made by the Big Four Australian-owned banks which have 90% of the NZ market. Bank profits are higher in NZ than in Australia. The cost of banking is a major cost for kiwi households. If the government is serious about lowering the cost of living for kiwi households then it needs to introduce more competition into the banking sector.

The introduction of open banking needs to happen this year. The banks have been given sufficient time to introduce open banking for the benefit of their customers. And they haven’t. It’s time for the Commerce Commission to regulate the banking sector to force open banking in 2024. Let customers choose and make it easy for them to change banking providers. For more details of the reforms proposed copies of my book “On the Brink” can be obtained from Amazon .

Credit: Otago Daily Times.