New Zealand banks to persevere amidst inquiry by Commerce Commission: S&P Global

The banks, Australia-owned, hold a total market share of 85%.

The dominance of New Zealand's four major banks in the banking industry is expected to persist, unaffected by any actions resulting from the Commerce Commission inquiry, reported S&P Global Ratings.

These major banks are well-equipped to maintain their leading positions, they emphasised.

This projection holds true despite the subdued operating and lending environment, which retains its competitive nature, especially in terms of mortgage pricing. The four major banks, all Australian-owned, collectively hold a market share exceeding 85%.

S&P Global Ratings has released a report titled "New Zealand's Big Four Banks To Stand Tall In Face Of Inquiry," supporting this outlook. 

ALSO READ: New Zealand picks Citi in banking services panel

The report focuses on the anticipation that the structure of the New Zealand banking sector will remain consistent, with the four Australian-owned major banks retaining their dominance.

The stability of New Zealand's financial system is bolstered by the profitability of its banks. Even in light of any measures introduced by the competition regulator through the inquiry, these initiatives are not expected to significantly impact the major banks' market positions or their profitability.