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Speaker 1: The Cabinet has agreed to make key Bank more competitive.

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Speaker 1: Thy're beefing it up with a five hundred million dollar

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Speaker 1: capital injection. Queybank parent company QWI Group Capital and Treasury

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Speaker 1: have been instructed to talk to potential investors. These could

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Speaker 1: include Kiwi saver funds. They could in include pension funds,

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Speaker 1: et cetera, but the government has ruled out selling off

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Speaker 1: its ki Bank shares. The Finance Minister Nicola Willis is

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Speaker 1: with me after six for now. Sam Stubbs is the

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Speaker 1: founder of Simplicity, the key We Saver Fund. Sam, Good Evening,

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Speaker 1: Good Evening, does this well? First of all, your reaction

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Speaker 1: to the announcement.

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Speaker 2: Oh look, I think it's a very sensible first step

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Speaker 2: towards getting Qwbank to be the bank it could be,

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Speaker 2: which is basically as big as the Aussie banks and

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Speaker 2: really bringing you serious competitions to the market. So first

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Speaker 2: of all, what they need to do is raise I

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Speaker 2: think five hundred million sounds round about the right amount

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Speaker 2: of money, and they need to inject that is new

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Speaker 2: money into Kiwibank to make it stronger. Clevee has other

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Speaker 2: things to spend its money on, so it'll come to

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Speaker 2: people like.

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Speaker 1: US and US for that money, will you invest?

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Speaker 2: I think we're highly likely to if the price is right.

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Speaker 2: I mean, we'll take it very seriously because if you

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Speaker 2: think about the banking industry, it is a profitable industry.

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Speaker 2: Banks are good investments long term. This would be you

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Speaker 2: would be getting an opportunity to get in early, as

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Speaker 2: it were, and then you know you you would normally

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Speaker 2: assume after this that the ultimately would be listed on

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Speaker 2: the stock exchange and mum and dad Kiwy investors would

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Speaker 2: get that chance as well. I do like the fact

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Speaker 2: that they're effectively restricting it to New Zealand investors so

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Speaker 2: that the kiwibank stays Kiwi. That makes perfect sense. And

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Speaker 2: there's plenty of money in the market now, Ryan to

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Speaker 2: do this, you know, keep you serving funds alone have

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Speaker 2: got around about one hundred and twenty billion dollars.

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Speaker 1: Is the five hundred million dollars floating around in the

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Speaker 1: air to fund it?

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Speaker 2: Oh? Look, I would have thought easily. I mean, if

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Speaker 2: you add up one hundred and twenty billion from Kiwi saver,

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Speaker 2: if you add up acc, if you take NZC but

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Speaker 2: that's about another one hundred and twenty hundred and twenty

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Speaker 2: billion dollars and you've got EWI, you've got other institutional investors.

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Speaker 2: So if the price is right, I would have thought

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Speaker 2: it would be relatively easy to raise five hundred million dollars.

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Speaker 2: I mean, you know, these things take time. You've got

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Speaker 2: to go through a process. But this should be a

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Speaker 2: good investment at the right price.

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Speaker 1: Will you, And the way you're talking makes me think basically,

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Speaker 1: you guys will get that. Those who can, who are

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Speaker 1: allowed to come early, will get a deal, and those

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Speaker 1: have to wait till the stock exchange listing will will

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Speaker 1: pay more.

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Speaker 2: I'll not necessarily, no, I think. I mean, if it went,

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Speaker 2: if it went to a stock exchange listing, what we

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Speaker 2: call an IPO, typically everyone who invests there it gets

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Speaker 2: a good deal. You saw that with the power companies

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Speaker 2: when they listed. So but that'll be years off. Ryan, Basically,

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Speaker 2: basically it will take years for KWI SAB for qv

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Speaker 2: bank to beef up. It does take time. You've got

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Speaker 2: to absorb that money, You've got to make new loans,

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Speaker 2: all that sort of stuff takes time. But this is

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Speaker 2: a really important and I think pretty significant first step is.

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Speaker 1: Your reading of it. When Nikola Willis says to the

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Speaker 1: big banks. Watch out. There'll be more to come unless

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Speaker 1: you play ball. Is your reading of it that she

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Speaker 1: means O listed on the stock extra. That's the next

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Speaker 1: sort of step if you don't buck up your ideas. Boys.

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Speaker 2: Yeah, look, I read that slightly differently. I read that

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Speaker 2: there's Look, there were fourteen recommendations. You're now on formal

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Speaker 2: notice that you've got to take these things seriously, make

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Speaker 2: them happen. This is is emphatical warning as I've ever

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Speaker 2: seen from from any politician to the big banks that

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Speaker 2: unless you shape up, they will be trouble. And I

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Speaker 2: think I mean the bank the big banks would be

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Speaker 2: false to to to you know, ignore this. This is

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Speaker 2: this is the Prime Minister and the Minister of Findings

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Speaker 2: standing up saying okay, games up. Now here are the recommendations.

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Speaker 2: You've got to make them happen. Remember, the only the

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Speaker 2: only person who can seriously do damage to the big

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Speaker 2: banks in New Zealand is the government because they've got

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Speaker 2: they've got regulation powers. So I think this is a

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Speaker 2: this is a really really formal warning to them that

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Speaker 2: you've got to allow competition in New Zealand because the

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Speaker 2: Commics Commission Commas Commission very emphatically said that the banks

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Speaker 2: were weren't allowing petition.

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Speaker 1: Then Sam stubs Simplicity for more from Hither Duplicity Allen Drive.

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