Jones asks Reserve Bank to consider new rules

Regional Economic Development Minister Shane Jones has met with the Reserve Bank and asked it to consider rules that would compel this country’s big banks to keep branches in the regions.

Jones raised his concerns about big profits and retreating regional service with Reserve Bank Governor Adrian Orr in a meeting yesterday.

‘‘He’s taken on board my concerns, he has undertaken to go away and do some further work and establish what, if anything, he might be able to do within his statutory responsibilities,’’ Jones said.

‘‘He didn’t boost my hopes but, I have to say, that he gave me a very fair hearing.’’ A potential regulatory move could be to make a certain level of regional services a condition of banking licences.

‘‘This is one of the questions that Mr Orr has gone away to do some research on. He absolutely did not give any positive affirmation — but he’s the source of ultimate authority in the banking industry,’’ Jones said.

Speaking to Stuff last week, Jones took aim at this country’s Australianowned banks, including Westpac, BNZ and ANZ, for taking ‘‘ever-increasing super profits’’ while retreating from the regions.

ANZ recently signalled the closure of Martinborough’s last remaining bank branch — a possible addition to the almost 50 branches that have closed in the past two years.

BNZ is also closing its Pahiatua branch early next month, after the town lost its ANZ branch last December.

Both banks said fewer customers were making use of local branches.

Jones said yesterday that the big banks had asked for a meeting with him. ‘‘Probably to tell me to shut up,’’ he said.

‘‘They’re welcome to meet with me, but they’ll find that that message will fall on barren fields. My focus is absolutely dedicated to the amount of capital that is repatriated overseas into the coffers of those international owners, and I want them to find innovative ways to maintain their presence in our provinces.’’

Orr has recently met with officials in other countries grappling with the same issue. ‘‘He just warned me, obviously, against pushing a perspective that would require entities like those banks to operate in a grossly economic, suboptimal manner.’’

Finance Minister Grant Robertson and Economic Development Minister David Parker were also at the meeting.

Robertson had been asked to include the issue in the Monetary Policy Inquiry, Jones said.