Martien Lubberink PhD’s Post

Ask yourself, is $500 million kiwi bank capital raise to fight Foreign owned banks $7 billion annual profit significant. $500 million represents approx. 3 weeks foreign bank profits from NZ. Would a landlord suggest 3 weeks rent, say $2000, sufficient enough to fix a rental property that is falling apart to compete as a rental with an OZ owned neighbours rental ? The small scale of $500 million capital raise, 3 weeks worth of Foreign Bank profits , as the Political response to capitalise Kiwi Bank, suggests our Politians may be compromised by economic ideology. Any landlord knows 3 weeks rent to fix a major building problem would be a joke. Would this coalition Govt we voted in to fix National / Act and Labours past financial failures, please stop repeating these outrageous economic responses. We are fast running out of options.

We are keen to buy a stake in KiwiBank. Why? Because with Open Banking arriving, start ups will revolutionise the customer experience and be the annoying mosquito’s the big Aussie banks deserve- hooray! But we also need a locally owned 100 pound Gorilla to lend serious money and get big bank margins down. That will help put serious $$$ back into the pockets of hard working families. This needs to happen, because Fonterra doesn’t run the biggest milking operation in NZ, the big banks do. So let’s beef up KiwiBank to seriously compete in lending, and make a fair return for investors too. You really can make money and do good %)

💼 Major Milestone for Kiwibank 💼 The government has approved a $500M capital raise for Kiwibank, enabling it to lend up to $10B to homebuyers or $4B to businesses. Finance Minister Nicola Willis highlighted this as a significant step to increase competition with the big four Australian-owned banks while bolstering New Zealand’s financial independence. A future IPO is part of the long-term plan, but first, Kiwibank will complete its digital transformation by 2028. The investment community is optimistic, but performance improvements, such as raising its current 4.9% return on equity, will be key to success. This is an exciting opportunity for New Zealand’s banking sector to evolve and deliver better outcomes for Kiwis. #BankingInnovation #KiwibankGrowth #NewZealandBusiness

It's concerning to see Treasury effectively advocating for the privatisation of Kiwibank here, arguing that the "natural progression for Kiwibank in raising capital in the medium term is through an initial public offering." We need less profitable banks. Selling Kiwibank shares - whether to the Superfund, Kiwisavers or the public market - undermines the flexibility to deliver that. Public ownership (and public capitalisation) gives us the option of a bank with lower margins, and therefore lower interest rates and fees for consumers. This is how you give Kiwibank the competitive advantage, and add some real competition to the market. https://lnkd.in/greTGhra

Check out an insightful piece by Paul McBeth on BusinessDesk NZ today (paywalled). The article zeroes in on Kiwibank's capitalisation needs but broadens the discussion to a pivotal question for NZ business owners: Why is capitalisation often overlooked or considered out of reach? This push for Kiwibank's capitalisation mirrors a deep-seated business philosophy in New Zealand: the preference for cash flow management over securing solid capital. This pattern extends beyond the banking sector, reflecting a national business mentality that leans towards minimalistic operations, dependent on the flow of daily business rather than substantial financial reserves, until market success is achieved. The situation with Kiwibank highlights the critical role of strong capital foundations not only for ensuring stability but also for fostering growth and innovation. It signals a crucial moment for New Zealand businesses to potentially revisit and revamp their strategies for better competition and growth prospects. What's the takeaway? The essence of progress is adaptation. By embracing shifts, actively seeking ways to bolster capital bases, and moving towards a more calculated financial strategy, New Zealand businesses can aim for greater achievements. Now is the moment to broaden our perspectives and aim for greater, bolder futures. https://lnkd.in/grAxa7b7

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With the introduction of the nation's first all-inclusive cashless environment, Askari Bank has made a major contribution to the advancement of Pakistan's digital financial landscape. Building cashless communities is the goal of this project, which supports the bank's digital transformation and financial inclusion goals. By emphasizing cashless transactions, the project hopes to make everyday life easier for people in particular communities and get them closer to living a lifestyle driven by technology. Read more: https://lnkd.in/gPhfGqqd #AskariBank #DigitalPakistan #CashlessEconomy #FinancialInclusion #KarandaazPakistan #SmartCommunities #DigitalTransformation #FintechInnovation #CashlessFuture

🌟 Delving Deep into Economic Insights 🌟 I typically steer clear of bank presentations, but a recent session hosted by Kiwibank was an exception. Attended by 200 SME business owners, we engaged Paul Conway, the Chief Economist of RBNZ, in a stimulating discussion. The insights shared and the rigorous questioning provided a valuable snapshot of current sentiments and perspectives. From market dynamics to the rationale behind RBNZ's actions, we delved beneath the surface to understand the intricate details shaping our economy. For those keen on staying ahead of the curve, I highly recommend exploring the key takeaways from this session through the link below. 📈💼 https://lnkd.in/dh6uCf4s #EconomicInsights #BusinessStrategy #RBNZ #SMECommunity #KiwibankPresentation

NZIER Quarterly Survey of Business Opinion is out and it's not good reading. The survey findings are In-line with recent earnings results we've been seeing which show a slowdown in the domestic economy. Markets are certainly starting to price in a weaker economy and as Mark has highlighted it'll be interesting to see if bank interest rate forecasts shift towards rate cuts being sooner rather than later. #interestrates #economy #valueopportunities?

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