Willis Pledges Capital for Kiwibank Amidst Medium-Term Needs
National's finance spokesperson Nicola Willis says Kiwibank will need capital injected into it over the medium term. However, she promises that the bank will stay in 'Kiwi hands.'
During a debate with Labour finance spokesperson Barbara Edmonds on Friday morning, Willis stated that last year they looked at injecting additional capital into Kiwibank to help it grow faster.
The Reserve Bank's changes to capital holding requirements for banks meant that Kiwibank didn't need the capital immediately, but over the medium term, they will require it. David McLean, Chairman of Kiwi Group Capital Limited (KGC), Kiwibank's parent company, had said in May that work on alternative growth scenarios and capital was at an early stage.
Willis emphasized the importance of finding capital for Kiwibank to help it compete with the big four Australian-owned banks. She stated that there are iwi funds, infrastructure funds, and KiwiSaver funds who want to invest in a New Zealand bank because 'they see the dividends.'