BNZ, who announced their profit last week, talked of the strong competition out there.
But I note their margin went up, up, 6 points to 2.43%.
So if there is so much competition, how come the margin is up?
Then came the claim from the Reserve Bank among others that the big banks are being tardy when it comes to passing on the Reserve Bank cuts to us punters.
Smaller banks are sharper. SBS claims they have hoovered up almost 6000 new customers as changing banks has become easier. Remember SBS last week put out their 3.99% money, limited to certain people, but a market leader nevertheless.
Now tied into all of this is the retail bank's long held argument that the margin is higher because they need the cushion, because the Reserve Bank makes them store away too much money for troubled times.
But, those rules are changing and changing in the retail bank's favour. In other words; less money required therefore, in theory, it should mean smaller margins.
You can also put in there the simple truth that has always been in play - there is nothing stopping us shopping around. We have a good number of retail banks and they do do deals. I know because I've done deals.
Some banks will shave decent margins to get your business. The trouble is a lot of us are too lazy to try and moaning is easier than hustling.
So who is right? Are the retail banks tardy? Is it a major issue? Is Nicola Willis right when she says things, and by "things" we mean rules, need to change?
I of course have long argued that Willis is too much hype and it's not all that bad. But I'm increasingly moving towards accepting I'm wrong.
As the Reserve Bank points out as wholesale rates drop the margins have risen, and on latest numbers, keep rising.
Maybe, God forbid, Adrian Orr was right when he used to come on this programme and lambaste the banks for making too many excuses.
What I do know is the conditions are increasingly right, either through wholesale rates or the changes to reserve rules, for us to see the margins fall and for the cuts to be passed through in full, and faster.
And the longer that takes to happen the more we need to see the big banks as a problem and bad actors in the economy.
Mike Hosking is a New Zealand television and radio broadcaster. He currently hosts The Mike Hosking Breakfast show on NewstalkZB on weekday mornings - where this article was sourced.
Then came the claim from the Reserve Bank among others that the big banks are being tardy when it comes to passing on the Reserve Bank cuts to us punters.
Smaller banks are sharper. SBS claims they have hoovered up almost 6000 new customers as changing banks has become easier. Remember SBS last week put out their 3.99% money, limited to certain people, but a market leader nevertheless.
Now tied into all of this is the retail bank's long held argument that the margin is higher because they need the cushion, because the Reserve Bank makes them store away too much money for troubled times.
But, those rules are changing and changing in the retail bank's favour. In other words; less money required therefore, in theory, it should mean smaller margins.
You can also put in there the simple truth that has always been in play - there is nothing stopping us shopping around. We have a good number of retail banks and they do do deals. I know because I've done deals.
Some banks will shave decent margins to get your business. The trouble is a lot of us are too lazy to try and moaning is easier than hustling.
So who is right? Are the retail banks tardy? Is it a major issue? Is Nicola Willis right when she says things, and by "things" we mean rules, need to change?
I of course have long argued that Willis is too much hype and it's not all that bad. But I'm increasingly moving towards accepting I'm wrong.
As the Reserve Bank points out as wholesale rates drop the margins have risen, and on latest numbers, keep rising.
Maybe, God forbid, Adrian Orr was right when he used to come on this programme and lambaste the banks for making too many excuses.
What I do know is the conditions are increasingly right, either through wholesale rates or the changes to reserve rules, for us to see the margins fall and for the cuts to be passed through in full, and faster.
And the longer that takes to happen the more we need to see the big banks as a problem and bad actors in the economy.
Mike Hosking is a New Zealand television and radio broadcaster. He currently hosts The Mike Hosking Breakfast show on NewstalkZB on weekday mornings - where this article was sourced.
1 comment:
Just when I thought every journalist bar Ryan Bridge had succumbed to bribes from the banking cartel, Mike writes his best article ever.
It is wonderful Mike has finally admitted his ongoing support of the illegal nz big business cartels, by repeatedly aiming his derision at market studies recommending the government monitor and punish NZ's big business cartels more frequently and more harshly, WAS WRONG!
Now Mike, the next step is to question Luxon on his weekly visit to your Show.
Mr Luxon, you said in 2022 you were uncomfortable with the large profits banks were making.
Yet you've done nothing about the $8b of excess profits the Aussie banks stole off kiwi battlers this year and repatriated so Australians enjoy the spoils.
Why not?
And when Luxon answers by stating it's Nicola Willis' responsibility,
Please ask Luxon...
Why did you promote the dishonest,
obtuse,
a4 reading,
shielded from Barbara Edmonds questions,
complaining about not being forewarned of parliamentary questions,
can't remember nor understand numbers,
Nicola Ardern oops Willis?
Luxons ability to spot talent and pair Ministers skill sets to the correct ministry for all his other ministers, demonstrates Luxon knew Willis is a dishonest dunce before he promoted her into the 2nd most important position in government.
WHY Mr Luxon?
Like Ardern oops Willis, Did you enter politics to support the Aussie cartels great KWI BATTLER extortion and their exporting of Kiwi battlers quality of life to Australia Mr Luxon?
Ps. I noticed D Farrar posted another kiwi battler distracting Maori bashing article. Yet still no mention of the Kwi Battler extorting Aussie: banking, supermarket, and insurance cartels on kiwiblog.
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