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Speaker 1: You would have seen the recommendations the final report from

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Speaker 1: the ComCom the Commerce Commission yesterday fourteen recommendations to make

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Speaker 1: our banking sector more competitive. Among those was an idea

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Speaker 1: to beef up Kiwibank, and this is something the government

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Speaker 1: is looking at. Nikola Willis says she's investigating, and she

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Speaker 1: was on this show last Thursday and asked her about

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Speaker 1: whether she would float, potentially float partially float key Bank

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Speaker 1: on the stock exchange and what she thought about foreign ownership.

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Speaker 1: Would you rule out foreign investment in Kibank?

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Speaker 2: Well, look, I'm taking advice on what is needed to

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Speaker 2: get investment into Kiwibank. And if I say, I've said,

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Speaker 2: let's look at what the options are.

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Speaker 1: So how could these options shake down? David Trump is

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Speaker 1: massive university banking expert. He's with us this morning. David,

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Speaker 1: good morning, Good morning Ryan. How do you best help

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Speaker 1: Keeybank raise capital? Is the what would be the smartest approach?

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Speaker 1: Do you think?

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Speaker 2: Oh, I'm certainly some partial soil to the New Zealand

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Speaker 2: public would be one way of going ahead with that.

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Speaker 2: It wouldn't. It will take them time to absorb a

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Speaker 2: large amount of capital, so that's probably better done. As

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Speaker 2: a relatively slow process. On the other hand, just giving

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Speaker 2: them small and providing some more amounts of capital, it

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Speaker 2: isn't going to mean that they're going to grow very rapidly,

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Speaker 2: but trying to have them have to have a bank

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Speaker 2: grow rapidly as usually a recided.

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Speaker 1: The disaster true, what is the Key We Bank done

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Speaker 1: in the past, because when they have had access to

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Speaker 1: extra capital in the past, have they used it for expanding.

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Speaker 2: Generally? On the other hand, they got some more capital

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Speaker 2: about August last year and they've only partially used that

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Speaker 2: so far, so that processes that process has been relatively slow.

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Speaker 2: Now I've read something about how they're spending money on

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Speaker 2: digitalization again that that's that's not necessarily a bad thing,

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Speaker 2: and that's one of the things that they would need

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Speaker 2: to do if they were to expand significantly.

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Speaker 1: Anyway, does in your mind, does Key We Bank need

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Speaker 1: to be key We owned.

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Speaker 2: There's no necessity for any bank to be under any

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Speaker 2: particular country's ownership. What has happened in recent years is

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Speaker 2: that operating banks across borders has become has been made

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Speaker 2: more challenging by international regulation. So that may that might

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Speaker 2: that might limit foreigners will enlisted by KEW Bank outright,

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Speaker 2: but that's a step down the road that we haven't

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Speaker 2: got to yet.

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Speaker 1: All right, thanks so much for your tom This morning,

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Speaker 1: David Truent, Massi University banking expert talking about the ComCom recommendations,

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Speaker 1: one of which is to give Kiwibank a big boost

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Speaker 1: so that they can be more of a player on

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Speaker 1: the local market.

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Speaker 2: Just for more from News Talk sed B. Listen live

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Speaker 2: on air or online and

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