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...

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