New Zealand banking industry survey recommends a review of the Reserve Bank of New Zealand's prudential supervision framework.

The Finance and Expenditure Committee of the New Zealand Parliament, in conjunction with the Primary Production Committee, released a report today on a cross-party investigation into banking industry competition. The report contains 19 key recommendations aimed at government agencies, financial regulatory bodies, and financial entities including retail banks, with the goal of strengthening competition in the banking industry. The government is required to respond to the recommendations within 60 days. The recommendations include: opening the market to more overseas banks and financial technology companies; strengthening New Zealand banks through investment; reviewing the prudent regulatory framework for the Reserve Bank of New Zealand to assess capital settings; and halting the increase in capital requirements for banks in rural and commercial banking sectors.