Author: Philip vanDyk

“Last year banks made a net profit of $7.18 billion. They also spent $9.1 billion running their businesses and paying tax here. That’s a net positive contribution of $1.92 billion – before you take into account the contribution banks make in funding household and business needs, to the tune of $535 billion. Providing a return… Read more »

“We believe the enquiry will ease any concerns in the community about competition and innovation in the banking industry,” said association CEO Roger Beaumont.

“It’s a big number, but they are big businesses,” said Roger Beaumont, the chief executive of the New Zealand Banking Association. “You have got to remember the $7 billion is matched by the $9 billion that those businesses spent running their businesses and paying staff and paying tax and contributing to the economy in general.”

“Our banks are transparent, and will engage constructively with the Commerce Commission. We have a competitive banking sector, with 16 retail banks operating in New Zealand and easy bank switching.”

The New Zealand Banking Association said banks would engage with the market study, but chief executive Roger Beaumont did not think it was necessary in the first place. “We’ve got nothing to hide. It’s a highly regulated industry and we’re used to being very transparent and open because of that degree of regulation,” he said.

“In recent years we have seen bank teams tied up with significant regulatory requirements, limiting the ability to focus on new product development. We hope the Commerce Commission will look closely at the regulatory environment as part of its study.”

“We believe the inquiry will ease any concerns in the community about competition and innovation in the banking industry,” he said. “We have a competitive banking sector, with 16 retail banks operating in New Zealand and easy bank switching.”

The New Zealand Banking Association said local banks were resilient because they were highly regulated, well capitalised, and profitable.

“Switching banks is easy. Your new bank can arrange everything including transferring your funds from your old bank and setting up your recurring payments to your new accounts. This can be done within five working days, and you don’t even need to talk to your old bank,” says Beaumont.