The cost of over-regulated banking: $10b to $14.4b a year

Is the Reserve Bank’s regulatory zeal stifling banking competition? (Image: NZME)

Wed, 16 Apr 2025

Over-regulation of the banking sector may be costing New Zealand between $10.1 billion and $14.4b in lost economic activity annually, say two of the most vocal critics of current banking regulation and competition settings.In a further submission to the finance and select committee inquiry into banking competition, former investment banker Andrew Body and lawyer Simon Jensen have used a complex but credible international model, known as GTAP, to arrive at their conclusion.“This is the result of less competition, innovation, flexibility, a...

Subscribe to BusinessDesk

Stay informed on business, government and financial developments across New Zealand.

Deeply researched, twice-edited and fact-checked news
Annual subscribers also receive a complimentary subscription to The Wall Street Journal
Personalised email news alerts, plus gift up to 5 stories a month to non-subscribers

You can cancel anytime with two clicks, an email or a phone call.
Find out more.

We are serious about journalism.

Name {{ registerForm.errors.get('name') }}

Email address {{ registerForm.errors.get('email') }}

Phone Number {{ registerForm.errors.get('phone') }}

Job Title {{ registerForm.errors.get('title') }}

Password Minimum password length of 8 characters.
Require at least one upper and lowercase, numeric, and special character. {{ registerForm.errors.get('password') }}

Repeat password {{ registerForm.errors.get('password_confirmation') }}

We had trouble validating your card. It's possible your card provider is preventing us from charging the card. Please contact your card provider or customer support.

Credit Card

Cardholder's name

{{ __(plans[index].name) | capitalize }} {{ plans[index].attributes.old_price | currency }} {{ plans[index].price | currency }}

All subscriptions auto renew but are easy to cancel.

I Accept The Terms Of Service

{{ registerForm.errors.get('terms') }}

Tax: {{ taxAmount(selectedPlan) | currency }}

Total Price Including Tax: {{ priceWithTax(selectedPlan) | currency }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerSeat ? '/ '+ spark.seatName : '' }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerTeam ? '/ '+ __('teams.team') : '' }} / {{ __(selectedPlan.interval) | capitalize }}

Infrastructure

The $20b plan to improve our old, risk-prone hospitals

Simeon Brown released the long-awaited plan and details of a new Dunedin Hospital tender.

Oliver Lewis 11:30am

Retail

Accent Group plans Sports Direct roll-out in NZ

With the help of London-listed Frasers Group, Accent Group will take on Rebel Sport.

Gregor Thompson 10:54am

Accent Group plans Sports Direct roll-out in NZ

World

US trade war raises cyber stakes with China

Security chiefs worry that rising economic pressure could result in further hacks.

The Wall Street Journal 10:00am

US trade war raises cyber stakes with China

Sponsored

Go beyond reporting zero emissions

Clean energy that helps businesses and communities thrive

Meridian Energy

Sponsored

New life in property market

Tax rule changes are bringing back mum-and-dad investors.

Fletcher Living

More Finance

Finance

FNZ extends controversial catch-up offer

Fintech FNZ has extended its deadline for “catch-up” equity offers, as employee shareholders say discontent grows.In March, the global fintech offered its class B shareholders a “catch-up” offer after it revealed their holdings could be massively diluted following its August capi...

Victoria Young 10:00am