Banking shakeup - why just Kiwibank, why not make Governmnet business c
From Crash@21:1/5 to All on Tue Aug 20 20:33:34 2024
So two areas of concern here.
The first is to enable Kiwibank to take on the big foreign-owned banks
by making access to more capital available. Great idea, but why just
Kiwibank?
Kiwibank was never established because of a sound business case that
justified it. NZ Post had no plans to do this. The Jim Anderton
party (also know as the Alliance) got this into a
confidence-and-supply agreement with Labour after the 1999 election.
NZ Post was tasked by the Labour government of the day with
implementing a political decision.
There are a number of small NZ-owned banks - TSB, Heartland and the Co-operative bank to name just a few. If the Government is going to
take actions that will allow NZ-owned banks to take on a 'disruptive'
role then all Kiwi-owned banks should have the opportunity to bid for
this.
Lastly the Government banks with Westpac. It is simply hypocritical
to go down this path without offering a bank that wishes to become
'disruptive' with the option to win government banking business as of
right if they can demonstrate that winning that business is crucial to
their ability to get to the scale required to be 'disruptive'.