Kiwibank is answer to fears about foreign banks
28 July 2003
Hon Matt Robson MP, Progressive Deputy Leader
Kiwibank is answer to Reserve Bank's fears about foreign-owned banks
Concerns in the Reserve Bank about further Australian ownership of the New Zealand banking industry are justified, Progressive MP Matt Robson says.
The Reserve Bank Governor says that if the Commonwealth of Bank of Australia buys National Bank, 85 percent of New Zealand's banks will be owned in one foreign country.
The Bank is considering tighter ownership regulations to protect New Zealanders if a main bank failed in Australia.
"No other developed country has as much of its financial system overseas owned," Matt Robson said.
"The best solution is to ensure a significant proportion of our banking system is New Zealand-owned. That is better than trying to tie regulatory knots.
"This is another reason why all of New Zealand is benefiting from the success of Kiwibank.
"Our bank is growing much faster than predicted and every day that it grows, it helps to ease the problems that are causing the Reserve Bank to be concerned," Matt Robson said.