Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


NZ banks laughing all the way to the bank

NZ banks laughing all the way to the bank

New Zealand banks, among the developed world’s most profitable, just got more profitable according to KPMG’s Financial Institutions Performance Survey.

Despite difficult conditions throughout the rest of the economy, banks' profits grew 13.6 percent in the year to September 30, 2012 and KPMG forecast profits will continue to grow out to 2014. Interest margins, another measure of bank profitability, are also up to 2.25 percent – a high level not seen since the height of the last property bubble.

“New Zealand banks, amongst the most profitable in the developed world, have just got more profitable and their excessive profitability is damaging the rest of the New Zealand economy,” said Green Party Co-leader Dr Russel Norman.

“Our banking sector is dominated by the big four foreign banks – ANZ/National, BNZ, ASB, and Westpac – who are sending their record profits offshore draining the New Zealand economy of much needed capital.

“Bank profits repatriated to Australia constitute the single biggest income outflow in our current account deficit making it even more difficult for us to rebalance our economy.”

Dr Norman offered several solutions that could help stem the capital drain and return bank profits to more reasonable levels.

“The banking sector needs a fresh injection of competition, particularly from New Zealand owned banks,” Dr Norman said.

“The National Government has dragged its heels on retendering New Zealand’s biggest banking contract – the Government’s own master banking contract – a contract that has been held by Westpac and untendered for 24 years.

“Retendering the master contract will give New Zealand-owned banks an opportunity to tender for some of the government’s banking needs and lower the government’s overall costs.

“Finance Minister Bill English announced that the contract was going to be retendered in the 2011/12 financial year. But he hasn’t done it.

“For too long, the National Government and the Reserve Bank have been complacent about the excess profitability of our foreign-owned banking sector.

“Instead of promoting competitive behaviour in our banking sector, they’ve argued that excessive profits were an important part of bank stability. This is lazy thinking. Proper regulatory oversight is what ensures bank stability.

“We can have a secure banking sector which makes reasonable profits that don’t come at the expense of the rest of the productive economy.”

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Populism And Labour 2017

For many people on the centre-left, populism is a dirty word, and a shorthand for the politics of bigotry. In this country, it has tended to be equated with the angry legions of New Zealand First. Who knew they were not just a reactionary spasm, but the wave of the future?

Certainly, at the end of this week, the next US President will have won office (at least in part) thanks to his proven ability at (a) scapegoating refugees and migrants (b) wooing neo-Nazis and racial supremacists (c) attacking journalists and judges (d) threatening to jail his opponents (e) urging nuclear proliferation and (e) by promising to restrict women’s rights to control their own fertility.

On the face of that campaign record, there wouldn’t seem to be much in common between Donald Trump and say, Spain’s centre-left populist party, Podemos. Yet arguably, the similarities could be instructive for the Labour/Green partnership here. More>>

 
 

Oxfam: 30% Of NZ Owns Less Wealth Than Our Two Richest Men

The research also reveals that the richest one per cent have 20 per cent of the wealth in New Zealand, while 90 per cent of the population owns less than half of the nation’s wealth. The research forms part of a global report released to coincide with this week’s annual meeting of political and business leaders at the World Economic Forum in Davos, Switzerland. More>>

ALSO:

Hospitals: Resident Doctors Set To Strike Again

Despite discussions between the DHBs and NZRDA over safer hours for resident doctors progressing during the last week, the strike planned for next week appears set to proceed. More>>

ALSO:

Not So Super Fund: More Burning Ethical Questions For Steven Joyce

Greens: Radio New Zealand reported this morning that the New Zealand Superfund has $77 million invested in 47 coal companies that the Norwegian Government’s Pension Fund – the largest sovereign fund in the world – has blacklisted. More>>

Activism: Greenpeace Intercepts World’s Biggest Seismic Oil Ship

Greenpeace crew have made contact with the world’s biggest seismic oil ship after travelling 50 nautical miles on two rigid-hulled inflatables off the coast of Wairarapa... Greenpeace radioed the master of the Amazon Warrior to deliver an open letter of protest signed by over 60,000 New Zealanders. More>>

ALSO:

Gordon Campbell: Why Tax Cuts In 2017 Would Be A (Proven) Bad Idea

Ever since the world fell prey to the mullahs of the free market in the 1980s, no amount of real world evidence has managed dispel one key tenet of their economic faith. Namely, the idea that if you cut income taxes and taxes on small business, a wave of individual enterprise and entrepreneurial energy will thus be unleashed, profits will rise and – hey bingo! – the tax cuts will soon be paying for themselves ... More>>

Liquor Sponsorship: Researchers Call For Ban On Alcohol Sponsorship Of Sport

“Due to alcohol sponsorship of sport, New Zealanders, including children, were exposed to up to 200 ads per hour they watched televised sport, and people watching football and tennis saw alcohol ads for almost half of each game,” says Associate Professor Signal. More>>

ALSO:

Mt Albert: Ardern For Labour, Genter For Greens

At the close of nominations, Jacinda Ardern was the sole nomination received for the position of Labour’s candidate for the Mt Albert by-election, says Labour General Secretary, Andrew Kirton. More>>

ALSO:

Earlier:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news