NZ financial watchdog says sector lacks oomph


New direction: RBNZ governor Adrian Orr arrives at a news conference in Wellington. The Finance Ministry says it intends to issue a new remit to the central bank and in this it would be made clear that the RBNZ supports a more competitive banking sector. — Bloomberg

WELLINGTON: New Zealand’s government has promised a shake-up of consumer banking after the country’s watchdog said the sector lacked competition and suggested improvements, including looking at ways to increase state-owned Kiwibank’s capital.

The New Zealand Commerce Commission report released yesterday found the country’s four largest lenders, all owned by Australian banks – do not face strong competition in the personal banking sector.

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