Opposition bank inquiry

Tuesday 21st July 2009

Opposition parties are clubbing together in an arguably belated response to the finance and expenditure select committee's refusal to hold an inquiry into the banking sector.

Labour finance spokesman David Cunliffe announced the inquiry yesterday, along with a politically unbranded website, www.bankinginquiry.org.nz, inviting public submissions.

Labour, the Greens and the Progressive Party MP Jim Anderton are to hold the inquiry jointly and will seek participation by all political parties, based on the select committee's report on the financial stability, following hearings with the Reserve Bank Governor, Alan Bollard.

That report recommended an inquiry into whether banks were doing all that they could to contribute to a recovery in the New Zealand economy, especially given the failure to pass on the full 600 basis points cut in the Official Cash Rate since the global credit crunch struck in Q3 2008.

The inquiry comes as the BNZ, Westpac, ANZ National ASB, and Rabobank face actions in the High Court alleging tax avoidance totally $2.4 billion in structured finance transactions earlier in the decade.

Businesswire.co.nz

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