Good Returns
Competitiveness of banks under the spotlight
20/06/2023
“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...
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Reuters
New Zealand to investigate profitability, competition at banks
20/06/2023
“We believe the enquiry will ease any concerns in the community about competition and innovation in the banking industry,” said association CEO Roger Beaumont.
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Newshub
Banks’ response to Government’s inquiry called ‘fantasy-land comment’ by competition advocate
20/06/2023
“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.”
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TVNZ
‘Raise corporate taxes’: Greens on banking fairness study
20/06/2023
“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.”
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RNZ
Banks will engage with Commerce Commission market study but don’t think it’s needed
20/06/2023
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.
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NZ Herald
Government announces major market study into banking
20/06/2023
“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.”
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Stuff
Commerce Commission to probe retail banking competition
20/06/2023
“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.”
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Interest.co.nz
The market study into the banking sector has broad political support as households struggle with high interest rates
20/06/2023
The New Zealand Banking Association said local banks were resilient because they were highly regulated, well capitalised, and profitable.
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Interest.co.nz
Commerce Commission to provide preliminary report on competition in the banking sector by August as market study gets underway
20/06/2023
“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.
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NZ Herald
Bank profits: Commerce Commission inquiry set to be launched tomorrow after political calls for action
19/06/2023
“The industry would welcome the opportunity to discuss bank profits and the contribution banks make to support the New Zealand economy, households and businesses,” Beaumont said at the time.
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