Banking expert says investigation into Australian bank behaviour isn't necessary this side of the Tasman

April 23, 2018

Claire Matthews says she does not believe NZ needs to conduct an inquiry into banks similar to what Australia is doing.

A Massey University banking expert says she is confident the big Australian banks operate differently in New Zealand to the way they do across the Tasman, which she calls "undesirable".

An Australian Royal Commission inquiry in to the banking sector is currently underway, with some now arguing that the same should take place in New Zealand, especially considering most of our biggest banks are Australian owned.

New Reserve Bank Governor Adrian Orr yesterday told TVNZ 1's Q+A programme that a review here was unnecessary, saying "the true problem and challenge that is going on in Australia is cultural".

Massey University's Claire Matthews, speaking this morning to TVNZ 1's Breakfast, said she agreed with that analysis.

Mr Orr gives his opinion on why he thinks New Zealand’s financial sector is in good shape.

"I don't think that we can expect the same things are happening here," Ms Matthews said.

"They are separate entities - they do have separate management.

"While there may be some influence, I don't believe we've got the same environment."

Ms Matthews described the issues uncovered in Australia as "systemic" - problems which have included "charging deceased clients for ongoing wealth management work, fees for no services, even some fraud by some staff".

She also said New Zealand has a "slightly different" regulatory environment.

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