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 role does the Commerce Commission play in this inquiry?

How do the major banks in New Zealand relate to Australia's banking system?