The Commerce Commission says the banking sector lacks competition.  

Its study has found a two-tier system with the four major banks having an apparent focus on maintaining profits, resulting in stable market shares, high profits, and an underinvestment in their platforms.  

Herald Wellington Business Editor Jenee Tibshraeny told Kerre Woodham that the Commission says if we give a smaller bank, Kiwibank, more capital, it can grow.  

She says the problem is the Government's trying to tighten its purse strings, so any money it gives Kiwibank will be questioned. 

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• 'Two-tier oligopoly': ComCom delivers verdict on bank competition