Heather du Plessis-Allan: It's good politics to call out the banks, but what are they doing wrong?

Of course, the Prime Minster took a swipe at banks yesterday saying their profits are not ‘justifiable’. 

Banks are easy targets. It’s good politics.

But will she actually put her money where her mouth is and do anything to rein in banks? 

No of course not. And actually nor should she. 

What are banks actually doing wrong? 

Far as I can see, they’re only doing what any good business would do. Which is to maximise profits for their shareholders.

They don’t seem to be making excessive profits.

ANZ, for example, has a return on equity of 13 percent, which seems unremarkable for a listed company.

Compare it to F and P Healthcare- 24 percent, Mainfreight- 28 percent, Hallensteins- 29 percent. 

$2 billion dollars sounds like a big annual profit, but then it is a really big company.

Logic doesn’t have to stop the Government though.  It could, if it wanted to, either regulate banks to curb their profits, or they could tax through something like a windfall tax like the Greens want.

But I’m not sure it’s worth the trouble it might cause in terms of attracting international investment into this country. 

This Labour Government has already put the frighteners up investors with the sudden and shocking ban on oil and gas exploration, then launching their attacks on the fuel companies and the supermarkets and the property investors.

I don’t think Labour has any more room for going after big business without freaking investors out.

They’d have to have a really good reason, and banks just doing their job seemingly responsibly is not a good enough reason.

And by the way, you’re not held captive by the big four banks.

If you don’t like them, and you don’t like the profits they’re making, go to Kiwibank. That’s why it’s there. 

But probably just like the Prime Minister you'll find anger is easy, action is harder.

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