Subj : Govt to spark banking inquiry, with a focus on rural services
To   : All
From : News
Date : Wed Jun 12 2024 01:12 pm

By Felix Desmarais, Digital Political Reporter

Finance Minister Nicola Willis has requested an inquiry into banking
competition, focusing on rural banking.


It comes as parliamentarians - including the Prime Minister - descend on
Fieldays in Waikato.


Willis said promoting robust competition in the sector was "vital" to
rebuilding the economy.


"New Zealanders deserve a banking sector that is as competitive as possible.
Banking services play an important role in our communities and in the
economy. Kiwis rely on access to lending when they make big financial
decisions, like buying their first home or opening a business."


She said in pursuit of that objective, she today wrote to the chairpeople of
the Finance and Expenditure, and Primary Production select committees,
requesting a select committee inquiry into banking competition.


"I have asked that the Finance and Expenditure Committee lead the inquiry, in
conjunction with the Primary Production Committee, which will focus on rural
banking."

One commitment in the National-New Zealand First coalition agreement was
"establish a select committee inquiry into banking competition with broad and
deep criteria to focus on competitiveness, customer services, and
profitability".


Willis said today's announcement reflected that commitment.


"Growing the rural economy is critical to rebuilding New Zealand's economy
and with farmers' satisfaction with banking services dropping in recent
years, it's critical we better understand the role of bank competition in
that sector.


"That's why I have asked the Primary Production Committee to work with the
Finance and Expenditure Committee to jointly develop terms of reference, join
meetings to hear submissions relevant to rural banking, and prepare a report
on rural banking to feed into the overall inquiry."


She said she expected the inquiry would hear submissions from banks operating
in New Zealand, with chairpersons and chief executives made available for
questioning.


"A more competitive economy is a more productive economy - with more growth,
innovation, and investment. Taking action to achieve a more competitive
banking sector is all part of our plan to rebuild the economy, lift incomes,
and improve the lives of all New Zealanders," she said.

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