Thu, 24 Apr
° °
  • Firstline - TV3 New Zealand

    Firstline

    Weekdays 6am

  • 3 News - TV3 New Zealand

    3 News

    Nightly 6PM

  • Campbell Live - TV3 New Zealand

    Campbell Live

    Weekdays 7.00pm

  • Three 60 - TV3 New Zealand

    Three 60

    Sundays 9.30am

  • 3rd Degree - TV3 New Zealand

    3rd Degree

    WEDNESDAYS 8.30PM

  • The Paul Henry Show - TV3 New Zealand

    The Paul Henry Show

    Weekdays 10.30pm

  • The Nation - TV3 New Zealand

    The Nation

    Sat 9:30am / Sun 10am

Reserve Bank has got it wrong - Greens

Friday 09 Nov 2012 10:32a.m.

Reserve Bank has got it wrong - Greens

The Greens are challenging the Reserve Bank over profits made by New Zealand's big four Australian-owned banks.

The bank's governor, Graeme Wheeler, told a parliamentary committee this week that Westpac, BNZ, ANZ and ASB were "about average" in international terms but Green's co-leader Russel Norman says that's wrong.

"In 2011 the big four Australian banks made a pre-tax return of 1.19 per cent on assets compared with a global average of 0.36 per cent," he said on Friday.

"Our Australian-owned banks are actually some of the most profitable in the world, contrary to advice recently given to parliament by the Reserve Bank governor."

The four banks are reported to have made a combined profit of nearly $3.5 billion in 2011/12 and Dr Norman says nearly all of it ended up in Australia.

"When you make the comparison of the profitability of our banks with the rest of our economy, it's very clear they're making excessive profits to the detriment of jobs and incomes," he said.

"Excessive bank profits act as a drag on the wider economy, raising the cost of borrowing for productive enterprises, farmers and home owners."

Dr Norman says New Zealand can't afford to have a complacent regulator that looks at excessive bank profits and then looks away.

ASB is owned by Commonwealth Bank, while BNZ is owned by National Australia Bank.

NZN

 
comments powered by Disqus