What a bank profits market study should focus on

The Kākā by Bernard Hickey · May 8, 2023 · 15m

TL;DR: PM Chris Hipkins as good as confirmed yesterday a market study into banks would be announced before the election and happen some time in the next year or two.

In a deeper analysis below the paywall fold in the podcast above for paying subscribers, I argue any market study should focus on why Aotearoa’s big four Australian-owned banks are able to make world-beating profits without much risk, including closer looks at:

* A surge in net interest margins, partly due to cheap Reserve Bank loans and the Reserve Bank paying billions in interest on deposits of money created by the Reserve Bank…