Martien Lubberink: ComCom diagnoses the problem with NZ’s banking industry

ComCom diagnoses the problem with NZ’s banking industry – but will its solutions offer a real fix?

The New Zealand Commerce Commission recently released a draft report on the state of personal banking services in New Zealand. Unsurprisingly, the market study found a marked lack of competition among the largest financial institutions in Aotearoa New Zealand.

But will the government bailout of Kiwibank in 2022 or the arrival of fintechs make any long-term difference? If the commission’s report is to be believed – probably not.

Martien Lubberink: The government taking full ownership of Kiwibank is a bailout in all but name

With the transfer last week of Kiwibank’s assets to a state-owned company, the New Zealand crown has now taken full control of the bank. At an estimated cost of NZ$2.1 billion, the change of ownership has all the hallmarks of a government bailout.

Former owners NZ Post, the Accident Compensation Corporation and the New Zealand Superannuation Fund could be considered justified in wanting to get out. It was an ailing bank in the making.