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Speaker 1: It's a movement in banking. Kiwibank have got the green

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Speaker 1: light for a half billion dollar capital injection. This is

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Speaker 1: part of the government's idea that if Kiwibank gets a

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Speaker 1: bigger bulk, they can lend more, grow more, provide more

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Speaker 1: competition in the sector. Sam Stubbs, as the founder of

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Speaker 1: Simplicity Kiwi Saberan is with us. Sam morning. Well, any Mike,

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Speaker 1: your scheme be in.

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Speaker 2: Look at the right price. Yes, we would and as

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Speaker 2: long as we knew that this was just the first

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Speaker 2: step down a journey of getting Kybank to be really big.

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Speaker 2: Because five hundred million dollars sounds a lot, but in

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Speaker 2: banking terms is just to drop in the ocean. Qvbank

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Speaker 2: would need to raise between ten and twenty billion dollars

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Speaker 2: to seriously take on the Aussie.

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Speaker 1: So will it's not money be there, Jenny?

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Speaker 2: Do you think, oh yeah, it will be matte If

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Speaker 2: you look at qq saber managers right now, Mike, if

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Speaker 2: they kept their allocation to New Zealand at thirty percent,

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Speaker 2: which is where they are now, in the next twenty

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Speaker 2: five years, they've got almost three hundred billion dollars to

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Speaker 2: invest in New Zealand, so very we could very very

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Speaker 2: easily recapitalize Kbank. By the way, we could also build

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Speaker 2: every school, hospital, road, power station we needed. This whole

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Speaker 2: infrastructure episode can be now funded by Kiwi, Saber. It

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Speaker 2: just takes time.

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Speaker 1: You need return on the money. Though, as far as

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Speaker 1: what will will it even if you could get the

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Speaker 1: money the key we Saber and the volume you want,

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Speaker 1: does it change the banking market?

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Speaker 2: It changes the banking market slowly over time, Mike, so

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Speaker 2: that there's no magic wand here ki Bank has been

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Speaker 2: undercapitalized for a couple of decades now, as it will

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Speaker 2: take time to get it up. There. Look, in the

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Speaker 2: worst possible circumstance, let's pretend Quey Bank becomes really big

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Speaker 2: and it just starts behaving like the Aussies. Right, so

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Speaker 2: you have five banks making superprofits, not four. Well, at

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Speaker 2: least one of them. Those profits will go back into

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Speaker 2: our key we Saber, Right, so you know we need

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Speaker 2: at least one really really big, hairy national champion. I

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Speaker 2: do think it'll bring pricing pressure into the market. There's

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Speaker 2: very little of it right now. But this is going

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Speaker 2: to take time. It's going to take lot, you know,

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Speaker 2: plenty of money, but at least we started the journey, you.

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Speaker 1: Know, Okay, the main push for them needs to be

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Speaker 1: where domestical, commercial, both The.

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Speaker 2: The easiest thing forretty bank to do is to lend

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Speaker 2: on first mortgages. That's not necessarily where I think we

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Speaker 2: most need the money. I think it's the commercial sector

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Speaker 2: and the rural sector probably need need that money more

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Speaker 2: because that's where the Aussie banks have been pulling out

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Speaker 2: because it's just been so easy to land on on

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Speaker 2: first mortgages. So there's also really really good margins there

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Speaker 2: as well. So that's where I would like them to

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Speaker 2: be focused if they got this additional money. But of

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Speaker 2: course they'll have their own board and make up their

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Speaker 2: own mind. But the most important thing, Mike is that

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Speaker 2: you know, we need more. We need more competition and

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Speaker 2: we just don't have enough competition.

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Speaker 1: Good stuff. Appreciate at sam Stubs Who's with Simplicity of course.

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