Progressive welcomes new rules for big foreign banks

Progressive MP Matt Robson said his party strongly endorses the move by the Reserve Bank to clamp down on the potential for the big foreign banks moving key operations outside New Zealand.

"Thank goodness Don Brash isn't governor any more

"Now we have a central bank that puts New Zealand first. It has written to the country's four Australian-owned big banks outlining draft rules about shifting key operations, such as information technology services, to outside contractors.

"While it is great that we now have a New Zealand-owned nationwide bank called Kiwibank which would never out-source its key functions to Australia, the same cannot be assumed about the big Australian banks that were permitted to buy-up former Kiwi banks like Bank of New Zealand and PostBank and TrustBank.

"So this move is an attempt to protect the New Zealand banking system from the vulnerability created by former Labour and National governments' decisions to sell-off our banking system to Australians," Matt Robson said.

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