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Summarised by Centrist
NZ First has proposed buying back the Bank of New Zealand (BNZ) from its Australian owner, NAB and merging it with Kiwibank to create a new Crown-owned “National Bank of New Zealand”.
Winston Peters says the move is aimed at increasing competition in the banking sector and reducing the amount of bank profits flowing to Australia. NZ First argues the major Australian-owned banks dominate the New Zealand market and that the sector remains structurally uncompetitive.
Under the proposal, the merged bank would remain commercially run but be Crown-owned. Peters said funding could come through a mix of sovereign bonds, Crown debt, ACC investment and the NZ Future Fund. He estimated the purchase price at “$7.5 billion upwards”.
The proposal follows long-running concerns about banking competition in New Zealand after the Commerce Commission found the market lacked sustained competitive pressure. Peters said the plan was about “taking back our country” rather than nationalisation.
Critics of the proposal argue the acquisition cost could be significantly higher than NZ First’s estimate, with some analysts suggesting a valuation closer to $24 billion. Others point out NAB is not currently trying to sell BNZ.
Some economists and commentators also question whether government ownership would materially improve competition or reduce banking costs for consumers. Alternative proposals floated by critics include expanding Kiwibank through private KiwiSaver investment or encouraging more digital-only banks to enter the market.
BNZ was previously state-owned before being sold to NAB in 1992 following major financial problems and taxpayer-supported bailouts in the late 1980s and early 1990s.
Image: Andykatib
