NZ's current bank capital rules give ANZ a big leg up on Kiwibank

Fri, 22 Feb 2019

By Jenny Ruth Feb. 22 (BusinessDesk) - Embargoed until 4pm New Zealand’s largest bank, ANZ Bank, currently must hold just over half the amount of capital that Kiwibank must hold to back every $100 of mortgage lending, giving the Australian-owned bank a huge cost advantage over its smaller government-owned rival. ANZ Bank and the other three major banks, which are all Australian-owned, have used their own internal models for calculating how much risk-weighted capital they need since 2008 but smaller banks, including Kiwibank, have been...

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