Yawn.
Blah Blah Blah…
Banking sector lacks competition – Commerce Commission draft report
The banking sector lacks competition, a Commerce Commission draft report, released on Thursday, has found.
It was asked by the government in June 2023 to look into the potential barriers or behaviours affecting competition and quality of services in personal banking.
The commission’s draft report into the personal banking sector said there was a two-tier market in which the big four Australian owned banks have the major share.
The sector lacked disruptive forces to drive change and deliver benefits to consumers, it said.
…another under regulated mutation of Capitalism the Commerce Commission can ignore!
The Commerce Commission are too cowardly to challenge the Supermarkets, why does anyone think they’ll take on the Banks?
We need a NZ bank like KiwiBank for our own economic sovereignty!
We are already molested and damaged by the big Aussie Banks who are reaping billions in monopoly rentals from NZ.
This country is built economically upon stealing Māori land and never paying it back, exploitation of migrant workers to ensure a low wage de-unionised economy and the criss-crossing old boys network of monopolies and duopolies that dominate NZ industry.
Normally this crony capitalism goes unnoticed because everyone is benefitting, but with Covid killing free market capitalism and the climate crisis interrupting the economy, people are stressed out and frightened and feeling poorer.
Suddenly the exploitative nature of NZs under regulated free market is under scrutiny like never before.
Why are we paying international prices for Dairy that is produced in this country using a monopoly?
Why are the Supermarket Duopolies killing us on food prices as food inflation explodes?
Why has the Medical Cannabis oligarchy market failed?
Why did the Gib board market fail?
And why the fuck are the Banks taking billions in profits while we suffer?
It’s time the Government had the courage to do what it’s supposed to do!
REGULATE CAPITALISM!
The great jackboot of the State is constantly on the throats of the little people and the taxation yoke is pulled by them when the jackboot of the State should be on the throats of the powerful and rich with the taxation yoke lifted from workers onto corporates!
We need to be kinder to individuals and crueller to corporations!
Yes Government should buy and own and back Kiwibank and here is a list of other things that should be done to ensure NZs economic sovereignty in an age of geopolitical shockwaves which will demand more local infrastructure be it energy, pharmaceuticals, an expanded military, more manufacturing AND our own Bank!
- Take the Government contract for its banking needs from Westpac and give it to Kiwibank to boost our own.
- Open a KiwiBank branch in every town in NZ alongside other public services and use it as a community hub as well as banking.
- KiwiBank launch new flexible mortgage platforms for owner occupier first time home buyers that is Government backed AND offers to take any stressed out first time home buyers from other banks who are threatening to take them to a mortgage sale.
- Windfall tax on bank profits.
- Financial transaction tax that makes so much money from speculators and the super rich that it allows us to lower GST to 10%.
The Australian Banks have had it too good for too long, as late stage capitalism continues to implode and crash, we need new ways of ensuring our independence and self reliance.
Being at the mercy of Australian Banks in an under regulated market ripe for annual plunder is not a fucking economic policy!
We need to start regulating these monopolies and duopolies and oligopolies because that’s the job of a Government in a democracy, to regulate capitalism so that its benefits are harvested and shared by everyone, not just by those making obscene profits at our collective expense!
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To be fair Countryboy has been educating us for a few years now on the bank gouging. We didn’t need the Commerce Comission to tell us.
We are all grateful for Countryboys well thought out critique of banks and the intellect he adds to this site. A few others on here could learn a thing or too if only they had the capacity.
The key lynch-pin fact that starts NZ Government thinking on banks is that if a bank or financial institution collapses, then the NZ Government will have to bail it out and make good any losses because the sleepy hobbits of Kiwiland will insist on that happening. Remember Key and Southern Finance?
So the smart people in Treasury have decided it is better for the Government to have a stable banking market with no bank exits or entrances, and every bank makes high profits. This means higher costs of banking for individuals forever, but almost no chance that Treasury has to bail out a bank’s customers/creditors/etc.
A bank deposit scheme is in the works, and we the bank customers will pay for it.
Labour had 6 years and didn’t do anything.
National had 9 years before that and didn’t do anything.
he said/she said the question is ‘what is to be done’
A private foreign bank makes a computer ledger entry and $600,000 appears in your account so that you can buy your house. You spend the next 30 years paying back the principal plus interest. If that loan had been issued by a kiwi bank that wealth would have flowed back into government coffers enriching New Zealanders enabling the government to help all kiwis.
I’ve been banking with the cooperative bank since I left school pretty much. They’re not perfect – definitely not perfect, but better than most anything else.
Whilst the Co-operative bank is owned by it’s customers the actual owners of the bank are a hedge fund/asset management consortium:
The sole shareholder of the Co-operative Bank Finance plc is the Co-operative Bank Holdings Ltd which is a private company limited by share capital. According to the bank’s 2019 accounts, the holding company is owned by hedge funds and other asset management companies.
Why don’t New Zealanders use Kiwibank so all the profits stay in NZ?
It’s actually socialism and over regulation that’s resulted in a lack of competition in the banking industry. Govt should not have bailed out banks and consumers looking for greater returns from riskier investments in the gfc. What we actually need is an open free banking market to encourage competition not the current way where it’s impossible to meet the current govt requirements to set up a new bank
please explain jon how our banking market is ‘socialist’
You sound a nice guy? Jon. But business lessons involve a bit of magic and fairy tales. Like this one, so close to reality when you apply a magnifying glass.
“Rumpelstiltskin” (/ˌrʌmpəlˈstɪltskɪn/ RUMP-əl-STILT-skin;
German: Rumpelstilzchen) is a German fairy tale. It was collected by the Brothers Grimm in the 1812 edition of Children’s and Household Tales. The story is about an imp who spins straw into gold in exchange for a woman’s firstborn child.
Rumpelstiltskin – Wikipedia https://en.wikipedia.org › wiki › Rumpelstiltskin
Remembering that a mortgage loan is money created out of nothing after an assessment of value of the projected asset, on a sort of leveraged basis, with something real and physical (usually) offered as collateral offered as a deposit to limit the amount requested, and your worth. It enables a big borrowing from the universal exchange system against future earnings or income, there is an obligation to pay and a security of some sort advanced, usually. That’s how I understand it.
What is the difference between real capital and financial capital?
It has been argued that the productive capacity of a company or country is given by real capital such as land, buildings, machines, and knowledge to produce goods. In contrast to such real capital is financial capital such as stocks or bonds.
Financial Capital – SpringerLink https://link.springer.com › …
Mortgage – Wikipedia
The word mortgage is derived from a Law French term used in Britain in the Middle Ages meaning “death pledge” and refers to the pledge ending (dying) when either the obligation is fulfilled or the property is taken through foreclosure.
Mortgage – Wikipedia https://en.wikipedia.org › wiki › Mortgage
Do we think Luxon would dare tell John Key his bank is too greedy?
You don’t talk to your mates and benefactors like that.
It is right and proper that we rail against the banks, duopolies, monopolies. But surely they were allowed to be created by the Commerce Commission which has proven to be so inept that the term corruption springs to mind.
Shouldn’t we turn our attention to them and their political masters and sheet home the blame where it belongs.