New Zealand Announces Banking Inquiry Amid Profit Concerns

New Zealand has announced an inquiry into the domestic banking sector due to concerns over high profits by lenders. The Finance Minister, Grant Robertson, stated that a market study will be conducted to ensure fair competition in personal banking services. The Commerce Commission will complete the report by August 2024. This decision comes amid rising cost of living and just months before a general election. The major banks in New Zealand are subsidiaries of Australia's leading banks, holding 90% of deposits.

What is the main reason for the inquiry into the New Zealand banking sector?

• To increase bank profits

• To investigate competition and ensure fair practices

• To reduce the number of banks

• To promote international banking

Who is responsible for completing the report on the banking sector by August 2024?

• The Australian Banking Authority

• The Commerce Commission

• The Reserve Bank of New Zealand

• The New Zealand Finance Minister

What economic issue is influencing the government's decision to investigate banking profits?

• A decline in international trade

• An increase in employment rates

• A surge in the cost of living

• A decrease in housing prices

Which of the following banks is NOT a subsidiary of an Australian major lender?

• ANZ

• Westpac

• Bank of New Zealand

• Kiwi Bank

What percentage of deposits do the big four banks in New Zealand hold?

• 50%

• 70%

• 100%

• 90%