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:
- Inject a further $100 million of capital in Kiwibank to speed its expansion into commercial banking;
- Allow Kiwibank to keep more of its profits to help it grow faster; and,
- 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.