Government announces market study into personal banking services
Published: 20 June 2023
Today the Government has announced that it will ask the Commerce Commission (the Commission) to undertake a market study into competition in New Zealand’s personal banking sector.
The study will allow the Commission to investigate any factors that may be affecting competition in the supply and use of personal banking services. Personal banking services will include current, deposit, and overdraft account services, personal loans and mortgage and credit card lending.
Personal banking services was chosen because of the important role the personal banking sector plays in New Zealand’s economy, and for household spending and saving. There are also indications that competition in the sector may not be working well for consumers. The study will help identify whether there are any competition issues and make recommendations to address any concerns identified.
This study will focus on the barriers to new competitors entering or expanding in the market, barriers to new or innovative products and services, and barriers that limit a consumer’s ability to switch banks. It will help the government better understand the market conditions in the sector and to understand whether consumers’ interests are being met.
The Commission will begin the study once the Terms of Reference is published in the Gazette.
The Commission is required to publish its final report by 20 August 2024.
This will be the fourth market study of its kind in New Zealand. The Government announced its response to the residential building supplies market study on 17 May 2023.
Market study to investigate banking competition(external link) — Beehive.govt.nz
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