Orr to investigate regional banking

WELLINGTON: Reserve Bank Governor Adrian Orr will look into whether foreignowned banks can be forced into maintaining services in the regions after meeting Regional Economic Development Minister Shane Jones yesterday.

Mr Jones sought the meeting with Mr Orr after criticising Australianowned banks for making big profits out of New Zealanders but pulling out of the provinces.

He was accompanied by Finance Minister Grant Robertson and Economic Development Minister David Parker. ‘‘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,’’ Mr Jones said.

‘‘He didn’t boost my hopes but I have to say, he gave me a very fair hearing.

‘‘He just warned me, obviously, against pushing a perspective that would require entities like those banks to operate in a grossly uneconomic, suboptimal manner.’’

Mr Jones said everyone agreed the longterm future of essential services such as banking in the regions was a key issue and he had strongly lobbied Mr Robertson to have it included in phase two of the Monetary Policy Inquiry.

He said Australian banks’ profits from New Zealand operations had grown 75% over the past 10 years to around $5 billion but they were shutting down branches in rural New Zealand. — NZME