Reserve Banks announces a decision on use of the word “Bank”

Read the Full Article Here: RBNZ announces decision on use of the word 'bank' - Reserve Bank of New Zealand - Te Pūtea Matua 

Xceda and the licensed non-bank deposit taker (NBDT) sector welcomes the announcement yesterday from the Reserve Bank of New Zealand that all licensed entities under the Deposit Takers Act regime in 2028 will be able to call themselves “banks”.

The Non-Bank Deposit Takers (NBDT) Association said the RBNZ’s decision was a positive step.

Giving NBDT members the ability to call themselves banks is another significant step forward in improving competition for banking in New Zealand.

Together with the recent moves to even the playing field in regulatory capital settings, smaller institutions such as Xceda will be better able to attract capital, provide innovative new products, and ultimately provide more choice for Kiwis.

As a sector, we have had very positive engagement with the RBNZ during the consultation process, so to have this outcome is exciting for our opportunities to meaningfully compete and be part of a rebooted NZ banking sector.

Competition and innovation in banking has already arrived globally. This announcement does a lot for homegrown institutions to be part of this transition. At the moment, the big four Australian banks control well over 90% of customer deposits in New Zealand. We should be ambitious enough to target Kiwi banks managing a far larger proportion of Kiwi deposits.