Jacinda Ardern is ruling out a Royal Commission into the banking sector.

ANZ New Zealand CEO David Hisco is stepping down after red flags were raised from thousands of dollars of personal expenses, including using funds to bay for chauffeured cars and a wine fridge. 

The Prime Minister told Mike Hosking it's an employment issue, not a wider issue.

"We, of course, have to maintain social license, the confidence of the public, particularly from major entities like the banks, but I still see that will still go ass a matter for them ultimately to manage."

She says that they already took a review into the banking sector after a Royal Commission in Australia turned up shocking revelations about the industry there.

Ardern also defended the extra money given to teachers to end the pay dispute, despite having previously told Mike Hosking that there was no more money. 

"It was re-appropriated through Communities for Learning. Also though, there were new additions to the agreement," she says, clarifying that area schools have not been part of previous agreements.

Ardern says that the re-appropriated money came through un-used funds. 

She says that the extension of the deal by a year and better pay parity between the primary and secondary school teachers were other matters that make this deal different, and defended saying there was no more money. 

"The offer we are talking about at the moment is different then that one."