Banks get lots of profit for not much expense

Banks get lots of profit for not much expense
The Commerce Commission has limited its inquiry to personal banking, but the scope should be wider. (Image: Getty)
Cameron Bagrie
The decision to restrict the Commerce Commission's bank investigation to personal banking is a thumbs-up for politics but a thumbs-down for reality.There's lots I could say but I’ll limit myself to these five thoughts:More than 50% of bank profits come from outside personal banking.Banks need to both price for risk and take risks.The 2021 OECD Economic Survey for Australia pointed to banks not lending to small and medium-sized enterprises and other problems – you could rinse and repeat here.Financial sector gross operating s...

More Finance

Wisdom from Milford’s ‘oldest’ fund manager
Finance

Wisdom from Milford’s ‘oldest’ fund manager

Stephen Johnston has been watching markets since 1997.

Gregor Thompson 09 Jan 2025
RBNZ issues first non-bank deposit-taker licence in nearly a decade
Finance

RBNZ issues first non-bank deposit-taker licence in nearly a decade

The Reserve Bank of New Zealand has issued a non-bank deposit taker licence to newly formed finance company Welcome.The last time the central bank issued a license was in 2017 to Christian Savings, which was previously licensed as Christian Savings Incorporated, according to the...

Staff reporters 08 Jan 2025
How tax rules discourage wealthy investor migrants
Finance

How tax rules discourage wealthy investor migrants

Covid refugees facing a four-year time limit on tax status are forcing the issue.

Pattrick Smellie 06 Jan 2025
M&A outlook: get set for big ticket IPOs
Finance

M&A outlook: get set for big ticket IPOs

Experts are picking a surge in mergers and acquisitions activity for 2025.