Rejecting the findings of a banking sector probe, the central bank said the industry should not reduce hurdles for smaller players but encourage “mavericks”.
to shake up subdued home loan competition in its big four-dominated market rather than lowering hurdles for smaller lenders to grow, the Reserve Bank of New Zealand says.
“The final report should place more emphasis on recommendations that would promote more disruptive competition among all players, including the large banks, effectively incentivising each to become a ‘maverick’.” – in ASB, Westpac, ANZ and Bank of New Zealand. Amid growing angst over bank profits and higher interest rates ahead of an election, former New Zealand prime minister Chris Hipkins ordered the NZCC probe last year.The NZCC delivered its draft report earlier this month, saying the big four “do not face strong competition” and that outbreaks of price competition were “sporadic rather than strong and contained”.
“The AML/CTF regime relies on businesses undertaking their own assessment of the money laundering and terrorism financing risks that customers might pose,” the RBNZ said.
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