Andrew Body: Banking Expert on the Government adopting recommendations

The Finance Minister's being urged to take urgent and decisive action on our banking sector. 

Ministers have accepted most of the recommendations of a select committee inquiry into the industry, including directing the Reserve Bank to focus on more competition. 

But banking expert Andrew Body says Nicola Willis needs to go further. 

He told Mike Hosking the Minister should be seeking law changes and a harmonisation of Australian and New Zealand banking rules. 

Body says the Minister should be ringing Treasury Secretary Ian Rennie, asking for a proposal for legislative change by 8am Monday. 

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Episode Transcript

Speaker 1 (00:00):
The government has been looking into the banking sector and
level of competition. We all know they think there's not
enough of it. The committee comes back with nineteen recommendations.
Government accepted all of them, so stuff like opening the
door toom all that overseas banks, reviewing fees, profits on
every day count, strengthening Kiwibank through further investment. Andrew Body,
financial markets banking expert, is with us on this. Andrew,
very good morning to you. Make in what camp are you?

(00:22):
I mean, have we got oligopolies and cartels operating here
or is it not that bad?

Speaker 2 (00:28):
We've got an oligopoly here that my yesterday's response from
the government isn't going to change that rights. It's really
a recipe for paralysis by analysis. I'm afraid.

Speaker 1 (00:46):
Okay, well that's good because I've been doing a lot
of reading. I just can't work out where I stand,
so I get where you stand. So the problem now
is we've got a problem, but yesterday's fix isn't.

Speaker 2 (00:57):
Effects No, it's not. I mean, we know what the
problem has been. Well, well canvassed over the last two
and a half years with the Commerce Commission and then
with a very successful cross party supported banking inquiry by
the FEC and PPC. They did a great job and

(01:17):
we need to take action. Yesterday's response is about writing
reports mostly, and we've had that, We've done that. What
I think the Minister of Finance should be doing is
bringing Ian Rennie, Secretary of Treasury and saying Ian on
Monday morning at eight o'clock, I want a proposal for

(01:39):
legislative change to fix the clear problem with governance, and
I want a new policy remit to stand in the
place while we get the legislation through. And I want
a harmonization with Australia proposal that I can take to
the Prime Minister that he can talk to Anthony Ellen
easier about.

Speaker 1 (01:59):
Well, hold on, then, what is she just jaw boning?
Because no one's talked to this up more than Nikola Willis.
So is she jaw boning or is she inconfident or
why isn't she doing what you're suggesting?

Speaker 2 (02:10):
I think she's a very competent leader, but it's this
is a tough gig, you know, this is an environment
both politically and economically that's a challenging as I've seen
in my professional lifetime, and she maybe just needs to
be a bit braver on this. You know, she's not

(02:32):
running a court of appeal for RBNZ decisions in her office,
but she should be running a really critical eye over
governance failure, regulatory overreach at RBNZ.

Speaker 1 (02:44):
Good stuff. I like your style, Andrew. You have a
good weekend too, Andrew Body, who's financial markets banking expert.

Speaker 2 (02:49):
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