Former Finance Minister Bill English has described the influence of Australia's big four banks as more pervasive in New Zealand than that of China.
In today's email we check out ANZ's monthly business confidence survey, Labour's plan for labour, the revelations about instant kiwi Peter Thiel - and more.
Kerry McDonald, a former chair of the BNZ and former National Australia Bank director, argues the current system designed to protect depositors in New Zealand’s big four banks is fundamentally flawed. He cites weak local governance by both the banks' boards and the Reserve Bank, and an unfair system that penalises local savers in any crisis. Like the IMF, McDonald is calling for tougher Reserve Bank regulation and reform of protections for savers.
In today's email, we detail the statistics out showing the increasing divide in wealth and the opportunity for financial mobility dictated by home ownership. And, speaking of statistics, we also look at the failure of Statistics House in the Kaikoura earthquake.
Bill English's downplaying of the scale of the national housing shortage was challenged yesterday in another sign that housing will be the major topic of debate in the election, alongside migration. He also opened himself up to accusations of going soft on the drive for extra housing supply when he pointed to prices having stopped rising in Auckland -- a tactic John Key used to take the focus off housing supply from 2009 to 2012.
Borrowers hoping (and savers fearing) that this Thursday's OCR cut might push retail interest rates lower may be left hanging by banks who have taken their foot off the mortgage lending accelerator and are instead keener on term deposits.
As the debate around the housing market and the potential need for a Debt to Income (DTI) multiple restriction burbles along in Wellington, the CEO of the bank with the biggest exposure to the housing market has weighed in with a few warnings to new rental property investors and the Reserve Bank.
Parliament resumes later today for a three-week session ahead of the December 3 by-election for the Mt Roskill electorate, with housing, transport and migration set to dominate the debate.
The economy could be growing as fast as 4.5% thanks to construction, tourism and retailing booms in Auckland, but high levels of lower skilled migration into Auckland appear to be dampening wage growth there and adding to deflationary pressures, a business confidence survey shows.
For the convenience of subscribers, here's my weekend column in which I argue the Government should help break the lending drought threatening the Auckland housing building boom by focusing KiwiSaver HomeStart on funding new builds.