Commerce Commission calls for beefed up Kiwibank and open banking in final report
Kiwibank needs to strengthened and open banking must be brought in to bring more competition to the bank sector, the Commerce Commission says.
Its final report on personal banking repeated there was little competition in the sector, with the dominant big four Australian owned banks making high profits, while Reserve Bank’s rules make it difficult for smaller banks and new entrants to challenge.
Commission chair John Small said a properly functioning market would have stronger competition and more aggressive efforts to compete for customers.
“What we see in New Zealand is that the major banks have little strategic differentiation, and their growth targets focus on maintaining market share and protecting margins and profitability.”
He said changes were needed to “bake in” disruption particularly to encourage the development of open banking to allow consumers easier bank switching or being offered competing services and products from third party finance concerns.
“We believe that the best prospect for driving change in the sector will come over time from accelerating open banking and ensuring that the regulatory environment better supports competition.”
He said banks had been too slow in developing open banking and it would need the government and industry to work together to bring it in.
The report said disruption was needed to shake up the sector ranging from easing the financial requirements needed for small banks to compete or new companies to enter the market.
“We also see a need for progressive regulation, where competition is given a higher weighting to ensure an appropriate balance between financial stability and competition.”
Oh come on!
Who gives a crap what the bloody Commerce Commission says about anything?
Their tepid, watered down, incrementalism does sweet fuck all to properly regulate NZs capitalism!
How about we have a Commerce Commission inquiry into how meaningless the Commerce Commission is!
The faint fart in a stiff wind the Commerce Commission has gently requested focuses on KiwiBank being a disrupter with Nicola Willis leaping on this idea to promote possible privatisation because National have yet to imagine an asset they can’t sell off to their rich mates.
You know the 1% are nervous about their money when a Government move launches a tsunami of negative critiques.
When rich white men be shrill, you should take note…
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…goodness aren’t they frightened by the Government stepping in and backing Kiwibank to the hilt?
They should be frightened.
We need a bank for our own economic sovereignty, we are already damaged by the big Aussie Banks who are reaping billions in monopoly rentals from NZ.
What these shrill rich white man voices all tsk tsking about a New Zealand owned Bank fear is that the sleepy hobbits of muddle NuZilind might wake up and demand some more economic sovereignty and focus on the exceptional greed of the Australian Banks.
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 balls to do what it’s supposed to fucking 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!
What these shrill rich man voices screaming about Kiwibank want to avoid is any examination of how the Banks fuck us.
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!
National’s interest in this is to create the sense that something is being done when the reality is very little is being done.
The 4 Australian Banks are laughing at us all the way to themselves.
Tick for all of this.
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%.
Is any of this Labour policy for the next time it’s in government? Why didn’t it do this when it had an historic map majority? If Labour can promise to decharter charter schools does it have the balls to promise it will renationalise Kiwibank before it gets privatised?
What needs to happen is the Government switches all its banking to Kiwi bank first and formost .Then they need to go back to government run house finance company much like the old rural bank .This government is adept at winding back the clock so it should not be too hard .They could fast track the legislation over night .Cut the banks out of the house market and see how they get on then most would be gone by lunch .Even better they could nationalize all of the banks into kiwi bank over night under urgency .
Privatization of Kiwibank. Luxon will need a new job come next election as clearly he has not a single ounce of skill to be PM or that of any of his unqualified MPs. Prior to the election I thought the one shining light in their caucus was Shane Reti but for the first time in my highly qualified life I was wrong, he is an abysmal failure.
I thought the same about Potaka but he is just another entitled skin head ready to trash his whanau to make himself look tough.
and like Paul Quinn, not actually that bright. Some might even say as fick as a plank, but it’s all relative I guess when you line ’em up against Chhours and others
I would be more worried if the banks were losing money and taking away the security we have in them .I would ha5e to see the effect of a bank falling over . The return on investment is high but as long as it is legal should not be a worry.
Seeing as now, Kiwi bank, not quite Nationalised as our rail and power used to be, without all the corporate exploit abuse manipulation profit and usury, what say, this pryle of corporate market share profit investors, one who, when greed for power Waka,JUMPS, WITH RIDDICULE WITHOUTHOUT shame.
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