Select committee inquiry into banking
Pitched as a way to hold New Zealand's big Australian-owned banks to account for New Zealanders, by forcing a public Parliamentary examination of how competitive, profitable and customer-friendly the sector really is.
The Policy: NZ First Banking Inquiry Policy — 2023 Election →
This was a NZ First coalition agreement commitment: to establish a select committee inquiry into banking competition with "broad and deep" criteria covering competitiveness, customer service and profitability. The party lists it among its delivered achievements.
What it does:
- Set up a cross-party Parliamentary inquiry, led by the Finance and Expenditure Committee (with the Primary Production Committee on rural banking), launched in August 2024 after Finance Minister Nicola Willis formally requested it on 13 June 2024.
- Gave MPs the power to summon bank bosses: public hearings ran from October 2024 to April 2025, starting with ANZ NZ chief Antonia Watson on 23 October and including ASB, BNZ, Westpac, Kiwibank and others.
- Built on the Commerce Commission's separate market study into personal banking, whose final report (20 August 2024) found the four largest banks — ANZ, ASB, BNZ and Westpac — "do not face strong competition" and operate as a "stable oligopoly".
- Heard from 216 organisations and produced 19 recommendations in its final report on 22 August 2025.
The context for the inquiry: New Zealand's banking sector reported total net profit of around \$7.2 billion in 2024 (KPMG figures), and the Commerce Commission found the big four's returns on equity sit persistently in the upper quartile of comparable developed countries. The four banks hold close to 90% of banking assets.
The result:
The inquiry was delivered and completed, so as a coalition commitment it was kept. On its substance, the verdict is mixed. Committee chair Cameron Brewer said he "pushed hard for cross-party consensus" and achieved it on 14 of the 19 recommendations, and the committee itself acknowledged its findings would "not be new to the sector" and were "unlikely to be a silver bullet for competition" (RNZ). Labour's Arena Williams argued coalition MPs over-focused on prudential capital rules "when they should have been focused on what would drive down" prices, and Greens co-leader Chloe Swarbrick called it "a hugely missed opportunity" and "tinkering around the edges". Finance Minister Nicola Willis backed the report as supporting the Government's competition agenda. On 13 November 2025 the Government agreed or partially agreed to all 19 recommendations, spanning open banking, a stronger Kiwibank, standardised loan information and Maori-focused lending changes.
The impacts to watch:
- Whether the inquiry's recommendations actually shift market share away from the big four, or mostly formalise reforms (open banking, Kiwibank capital) that were already underway.
- Whether enabling Kiwibank to raise up to \$500 million in capital and lowering barriers for overseas banks and fintechs produces a genuine "disruptor", as the Government hopes.
- Whether rural and Maori borrowers see clearer pricing and better access, as the inquiry's terms of reference intended.
This overview is summarised by AI from public sources. It may contain errors and is a guide, not the definitive record — we welcome corrections.
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Key milestones
Finance Minister formally requests the inquiry
Acting on the National–NZ First coalition agreement, Finance Minister Nicola Willis asked Parliament's Finance and Expenditure Committee to lead an inquiry into banking competition, with the Primary Production Committee examining rural banking. Treasury records the request as dated 13 June 2024, setting in motion the cross-party inquiry NZ First had campaigned for.
Commerce Commission finds a "stable oligopoly"
Days before the Parliamentary inquiry ramped up, the Commerce Commission released the final report of its separate market study into personal banking on 20 August 2024. It concluded the four largest banks — ANZ, ASB, BNZ and Westpac — do not face strong competition, described the sector as a "stable oligopoly" with persistently high profitability, and recommended changes to lower barriers to new entrants. The findings became a key evidence base for the select committee.
Bank chief executives summoned to Parliament
Public hearings began on 23 October 2024, with ANZ New Zealand chief executive Antonia Watson appearing first, followed over subsequent weeks by ASB, Westpac, BNZ, Kiwibank, TSB, the Co-operative Bank, SBS and Rabobank. As interest.co.nz reported, MPs questioned the banks on the price of services, sector profitability, barriers to competition and the treatment of rural customers. Hearings continued through to April 2025.
Inquiry completed with 19 recommendations
The Finance and Expenditure Committee released its final report on 22 August 2025, drawing on submissions and hearings from 216 organisations and making 19 recommendations. Chair Cameron Brewer said he had "pushed hard for cross-party consensus" and secured it on 14 of the 19 points. Recommendations included strengthening Kiwibank, lowering barriers for overseas banks and fintechs, standardising loan information, reviewing capital rules for rural lending, and voluntary service standards for Maori customers.
"No silver bullet" — opposition calls it a missed opportunity
Reaction split along familiar lines. The committee itself conceded its findings were "unlikely to be a silver bullet for competition", as RNZ reported. Labour MP Arena Williams argued coalition members had focused on prudential capital rules "when they should have been focused on what would drive down" prices for customers. Greens co-leader Chloe Swarbrick called the inquiry "a hugely missed opportunity" and "tinkering around the edges", arguing it stopped short of bold recommendations. Finance Minister Nicola Willis defended it as supporting the Government's wider competition agenda.
Government accepts all 19 recommendations
On 13 November 2025 the Government announced it agreed or partially agreed with all 19 recommendations, RNZ reported. Measures span open banking (the Customer and Product Data Act received Royal assent in March 2025), a stronger Kiwibank backed by an approved capital raise of up to \$500 million, standardised credit information, a broader regulatory sandbox for fintechs, and Maori-focused lending changes. Commerce Minister Scott Simpson said he would write to banks urging standardised product information, and Banking Association chief executive Roger Beaumont signalled support. Critics maintain the package largely formalises reforms already in train; supporters say it sets a clear direction for a more contestable market.
What people are saying online
Public mood is divided: many welcome politicians finally grilling the big Australian-owned banks over record profits, while sceptics on all sides argue the inquiry produced talk rather than lower fees or genuinely tougher competition.
See the conversation:
Aggregated — individual posts are not cited.
Sources
- NZ First — Our achievements (banking inquiry commitment) ↗
- Treasury — Finance and Expenditure Committee inquiry into banking competition ↗
- Commerce Commission — Market study into personal banking services ↗
- NZ Parliament — Parliamentary banking inquiry completed ↗
- interest.co.nz — Bank CEOs face parliamentary grilling as inquiry kicks off ↗
- RNZ — Banking inquiry acknowledges it's no silver bullet for competition ↗
- RNZ — Suite of banking competition changes adopted by government ↗
- NZ Herald — NZ bank profits hit \$7.2 billion (KPMG) ↗
- Beehive — Report backs better banking competition (Hon Nicola Willis) ↗