New Zealand Announces Banking Inquiry Amid Profit Concerns (1)

New Zealand’s government announced an inquiry into its banking sector amid concerns that lenders are making excessive profits.

Cabinet has agreed to a market study into competition in the sector for personal banking services to ensure the market is working well for New Zealanders, Finance Minister Grant Robertson said Tuesday in Wellington. It will be conducted by the antitrust watchdog Commerce Commission and be completed by August 2024.

The government has voiced concerns about bank profits for several months, particularly when lenders reported earnings increases at a time when the nation was facing a surging cost of living. The decision ...