Non-banks, banks welcome different aspects of ComCom draft report
The ComCom released its draft report on banking competition, including 16 recommendations from the Reserve Bank better ensuring a level playing field and the Financial Markets Authority paying more attention to mortgage brokers' conflicts of interest and that the government should accelerate progress towards open banking by setting a June 30, 2026 deadline.
ComCom also wants the government to give Kiwibank more capital to allow it to become a “maverick” disruptor of the four major banks as well as reviewing legislation such as the Credit Contracts and Consumer Finance Act (CCCFA) and the Anti-Money Laundering and Countering Financing of Terrorism Act (AML/CFT Act) which hamper competition.
“We are pleased to see the commission recognises the significant impact regulation has on consumers,” said New Zealand Banking Association chief executive Roger Beaumont.
ComCom chair John Small said it is “certainly true that there has been a lot of expenditure going into that category,” but he also said that the banks have under-invested in their core banking systems, and called that a sign that competition is lacking.
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