Letting the banks charge their own extra fees might be a non-starter. The government has some other ideas, including a cash mandate and a possible new rural services levy to keep branches open.
The federal government has laid out a big picture proposal to keep cash alive. But it will need to keep a close eye on the details, and the unique challenges cash presents for businesses.
Class actions are a growing trend in the ways consumers access justice. That’s important, as many avenues for consumer protection are too difficult for individuals to pursue.
Four Australian banks dominate the banking sector in New Zealand. There has long been concern about whether consumers are getting the best deal, and yet 54% have never changed banks.
Martien Lubberink, Te Herenga Waka — Victoria University of Wellington
Before partial privatisation is considered, Kiwibank should focus on strengthening its capital base, improving performance, and building a track record of growth and innovation.
On one hand, the government has just waved through one of the biggest banking mergers of the last 20 years. On the other, they’ve been waving the big stick at Australia’s supermarket oligopoly.
Martien Lubberink, Te Herenga Waka — Victoria University of Wellington
The Commerce Commission says New Zealand’s banking sector is uncompetitive. But in the rush to fix the problem, regulators need to ensure they don’t introduce risk and instability into the system.
Insurance is supposed to be a safety net, but it can be weaponised in domestic and family violence situations. There’s a lot we can do to better protect victim-survivors.
Peter Martin, Crawford School of Public Policy, Australian National University
We really are being charged more than we used to be. If the government is concerned about price gouging, it could try this bold idea: offering its own low-cost bank loans.