(24 September 2004 – New Zealand) New Zealand is examining the potential benefits of adopting a joint approach to banking regulation.Finance minister Michael Cullen said the Reserve Bank of New Zealand, Treasury and the Ministry of Economic Development are working together to explore whether such an approach would benefit New Zealand.
“Once all this work is complete we can then make a decision on whether further integration with Australia would improve New Zealand’s economic growth and performance,” Cullen said in a statement.
He said banking would be the key focus of the review but that officials would also consider the merits of including insurance under a similar regulatory approach.
The New Zealand government has also introduced new rules to make foreign owned banks – the five major banks are all Australian owned – pay more tax.
Cullen said legislative changes would be introduced in a taxation bill in November.
“The New Zealand tax payments of foreign owned banks have not appeared to reflect their reported profits in recent times,” he said.
“I am advised that they are using certain features of our tax rules to pay less tax in New Zealand.”