Banking inquiry reference terms laid out

Submissions are being taken by the finance and expenditure committee into the expanded inquiry, which comes after the Commerce Commission’s industry study into banking competitiveness. The commission is due to release its final report next week. 

As part of the coalition agreement between National and New Zealand First, the government is holding the select committee inquiry with broad and deep criteria to focus on competitiveness, customer services and profitability.

The committee will explore why banks’ favour mortgage lending over business and rural sector lending, return on capital from business, rural and residential mortgage lending and the level of interest rates charged to each sector.

The terms of reference are part of the committee’s ongoing efforts to ensure fair and competitive banking practices, Stuart Smith, committee chairman says.