Oct 14, 2008

Big Banks Have Concerns About New Zealand Scheme

This from the NZ Herald

While the big four Australian banks have professed their support for the scheme, the Herald understands there is some dissatisfaction that it will see them cross-subsidise smaller institutions, including finance companies and Kiwibank.
Under the scheme, banks will be charged a fee of 10 basis points on deposits of more than $5 billion.
"How much is Kiwibank's deposit figure?" said one major bank source. "$4.7 billion."
Australian media commentators have been more blunt, labelling the scheme a tax on the Australian banks "to bail out any smaller New Zealand finance companies that fail".