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Pressure is mounting for an inquiry into the banking sector.
The National Party wants a “short, sharp” inquiry into competition instead of an extensive market study from the Commerce Commission. The Green Party and ACT have supported the calls to put extra scrutiny on banks, which have reported major profits as people struggle with the high cost of living and mortgages rate hikes.
The Reserve Bank’s chief economist, and governor, have joined the chorus, questioning the returns banks are making.
Banks generated a record $7.15 billion in after-tax profits last year.
As banks prospered, many households faced an increasingly tough time.
Bank executives interviewed for the KPMG Financial Institutions Performance Survey said they were “concerned about borrowers’ ability to service their debt as interest rates rise”.
What do you think? Does New Zealand need an inquiry into the banking sector? Vote in the Yeah, Nah poll above.
READ MORE:
* By the numbers: Here’s why some people think banks are making too much money
* National says ‘short, sharp’ inquiry into banking competition needed
* KPMG bank report shows banks lifting margins despite claiming ‘concern’ for borrowers
* What is the Silicon Valley Bank collapse all about?
Britain’s shadow chancellor of the exchequer, Rachel Reeves, says she is “very concerned” about SVB collapse.
Kathryn George/Stuff
Is an inquiry into the banking sector necessary?
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