The National Bank of New Zealand‘s ownership by the ANZ Banking Group can be dangerous as all of New Zealand’s major banks are now owned by Australian banks like Westpac Banking Corporation, ANZ New Zealand and ASB Bank (Commonwealth Bank of Australia). Since banks operating in New Zealand are owned by Australian banks any volatility or negative changes in the Australian banking system can also affect the New Zealand banking system.
Corporate fraud like those of Enron and WorldCom can happen anywhere and a similar happening like that in Australian banking will affect New Zealand.
In a consumer point of view these Australian owned banks can lead to loss of competition in the market. These major banks may not offer customers products and services that are better and cheaper. One day these major banks can charge $1 for every EFT-POS transaction and increase loan fees 10 times.
It is too late as the sale of the National Bank has been approved. What the rest of New Zealand can do is to be vigilant at least.
Filed under: Letters from New Zealand |