The Green Party has a plan to strengthen Kiwibank. 

When the Reserve Bank recently cut interest rates again, many Kiwis wondered why the big banks didn't pass the savings along to us, their customers.

Part of the problem is the National Government has limited Kiwibank’s ability to compete with the big four Aussie-owned banks leaving them free to make unnecessarily large profits off Kiwi households and businesses.

We’ve got a plan to change that.

We’d strengthen Kiwibank so it can properly compete with the big four Aussie banks, and drive them to cut lending rates for all of us, no matter who we bank with.

To achieve better bank interest rates, the Green Party will:

  1. Inject a further $100 million of capital in Kiwibank to speed its expansion into commercial banking;
  2. Allow Kiwibank to keep more of its profits to help it grow faster; and,
  3. Give Kiwibank a clear public purpose to lead the market in passing on interest rate cuts.

Under our plan, a first home buyer in Auckland with a $500,000 mortgage could save $690 per year*, meaning they pay off their mortgage earlier.

Across the entire economy, these mortgage savings alone translate into savings of $312 million per year. That’s a massive saving for NZ Inc.

A stronger Kiwibank would lead a change in New Zealand banking. It’s the smartest solution to ensure all the banks pass on the best interest rates to Kiwis.

*If their bank passed on a 20 basis point interest rate cut

In Government we have investigated ways to help Kiwibank become more competitive in order to become the Government's bank.

DOWNLOAD FULL POLICY

Latest Finance Announcements

Story

Report shows urgent need to fix wealth inequality

A new report out today provides all evidence the Government needs to start addressing runaway inequality and rebalance Aotearoa to work for everyone.
Read More

Story

It’s important to know your KiwiSaver history, Mr. Luxon

What the Government should now do is reverse the cuts the National Party Government made to KiwiSaver incentives, the Green Party says.
Read More

Story

Bold solutions needed to ease inflation pressures

Action is needed to address the inequality crisis and support New Zealanders on the lowest incomes, the Green Party says.
Read More

Story

Inquiry into COVID-19 economic response necessary

The Green Party is again calling on the Government to review the economic response to COVID-19, as the Reserve Bank of New Zealand puts up the Offi...
Read More

Story

Budget 2022: James Shaw Budget Speech

Mr Speaker, It has taken four-and-a-half years to even start to turn the legacy of inaction and neglect from the last time they were in Government ...
Read More

Story

Rising household costs hurting low-income people

The Green Party says the Government needs to do more for those on the lowest incomes as inflation outpaces wage and benefit increases.
Read More