Delivering fairer banking for all Kiwis: Vanessa Weenink, MP for Banks Peninsula
For too long, the big four Aussie-owned banks have dominated the market, leaving many Kiwis feeling like the odds are stacked against them.
The good news is the big banks are on notice and the Government is stepping up to change that to deliver a banking system that works for everyone, not just the big players. It is moving forward to increase banking competition through boosting Kiwibank to enable them to offer fairer prices, and taking steps to ensure the Reserve Bank places greater importance on competition in the banking sector.
We’re also ensuring the banking sector works for all New Zealanders—directing the Reserve Bank to prioritise competition, making it easier for new banks to enter the market, and removing barriers such as restrictions on using Māori freehold land as collateral for loans. The Government will focus on expanding access to the exchange settlement system with decisions by March 2025, reviewing risk assessment for a range of bank lending and reviewing minimum capital thresholds for new entrants into the banking sector.

Rural communities are a key focus of this work. Farmers and rural businesses have said they often feel the impact of limited competition the hardest. That’s why two Parliamentary select committees have been leading an inquiry into rural banking.
We’ve now made it easier to access credit by easing the brakes on overly strict loan rules. We’re also implementing all 14 recommendations from the Commerce Commission, including simplifying the process for switching banks, improving loan comparison tools, and advancing open banking. The changes the Government is making will tilt the balance more in favour of bank customers and smaller players in the sector.
National wants to see increased investment in innovation, more competition between the banks and better service for businesses and people. A stronger, fairer economy depends on a banking system that puts people first. These changes ensure New Zealanders get a better deal and a system that works for everyone.
Our changes to create a banking sector that works for all New Zealanders, whether you’re living in the city or on the farm. A more competitive banking system provides better options and lower costs for everyone no matter where you are.