Banks are close to making $10b in profits, but do they deserve it?

Banks are close to making $10b in profits, but do they deserve it?
Lending is a two-way street, not a one-way dead-end. (Image: Unsplash)
Cameron Bagrie
Ten billion dollars. Is that number going to be reached when we see the next lot of pre-tax bank profits? I suspect it is.Strong income, low costs and the lows in the credit cycle are a powerful combination.Banks are large enterprises and, yes, they should make significant profits. But those profit figures should make us ask some hard questions.Do banks take enough risks? The financial metrics say: not really.How can we screw the scrum towards more productive lending? What are the barriers?Do borrowers show enough skill in managing and taking r...

More Finance

Willis can do more to fix banking competition
Finance

Andrew Body: Willis can do more to fix banking competition

A competitive banking system needs more than lower capital adequacy ratios.

Credit card issuers fear ComCom proposals
Finance

Credit card issuers fear ComCom proposals

The proposed regulations will stifle banking competition, says Mastercard.

RBNZ signals U-turn on bank capital requirements
Finance

RBNZ signals U-turn on bank capital requirements

A major shift at RBNZ's first public outing since Adrian Orr's sudden departure.

Pattrick Smellie 31 Mar 2025
Grenon seeks to end ‘futile’ NZME board stoush
Finance

Grenon seeks to end ‘futile’ NZME board stoush

It's time for the current board to fold 'em, says coup orchestrator. 

Pattrick Smellie 26 Mar 2025