New Zealand’s Commerce Commission plea for lower bank capital to bolster bank competition – what could possibly go wrong?

On 21 March, the New Zealand Commerce Commission published a study of the domestic personal banking services market. For those who are unfamiliar with the Commerce Commission, it is New Zealand’s leading agency for promoting competition, ensuring fair trade, and protecting consumer rights, dedicated to keeping markets fair and informed. The study finds that the… Read More New Zealand’s Commerce Commission plea for lower bank capital to bolster bank competition – what could possibly go wrong?

The RBNZ Financial Stability Report: plus ça change.

Yesterday, the Reserve Bank published its May Financial Stability Report (FSR). It’s always an interesting read, and I guess that RBNZ employees enjoy contributing to this publication. I will not dwell too long on the report, as the message is very Blue Peter: “New Zealand’s financial system is well placed to handle the increasing interest… Read More The RBNZ Financial Stability Report: plus ça change.

Eyes Wide Shut: Did Bank Capital Grow under RBNZ’s Governor Orr?

And what does it mean for one bank in particular? Last week, audit firm KPMG published its quarterly Financial Institutions Performance Survey (or FIPS). It featured the deteriorating profitability of New Zealand’s banks. Bad news of course, and the New Zealand financial press quickly jumped on the survey. Radio New Zealand printed a headline sporting… Read More Eyes Wide Shut: Did Bank Capital Grow under RBNZ’s Governor Orr?

The curious share price movements of four big Oz banks on 5 December 2019

On 5 December 2019 at 12:01 pm, I received an email from the Reserve Bank of New Zealand. The email announced some important decisions about the Bank’s capital review. As the email contained summary information only, I went to the RBNZ website to get the documents explaining the capital review decisions. Unfortunately, it was impossible… Read More The curious share price movements of four big Oz banks on 5 December 2019