Quarterly Statement by the Council of Financial Regulators – August 2024

The Council of Financial Regulators (CoFR) held its quarterly meeting on Tuesday 27 August 2024. The meeting was chaired by the Chief Executive of the Financial Markets Authority Samantha Barrass. The focus of the meeting was the final report of the Commerce Commission’s market study into personal banking services. The Council also took time to share their individual agency priorities and received an update on the work on basic bank accounts.

The Council welcomed the final report of the market study into personal banking services. They noted the Commission’s views about the state of competition in the sector and the recommendations made to improve it – particularly how the recommendations evolved from the draft report. There was broad support for the recommendations from CoFR with individual agencies noting how some recommendations complemented existing work programmes. The Council also noted how aspects of the final report aligned with various CoFR priority themes, for example open banking (digital and innovation), basic bank accounts (financial inclusion), and proportionality frameworks (regulatory effectiveness). There was a practical discussion on how incoming regulatory levers could also be used to help support more competition in the sector. The Council also discussed how it might support MBIE in preparing the Government’s response to the report and the ongoing monitoring of actions taken.

The Council noted work currently underway to produce an issues paper on access to basic bank accounts. It was noted this paper would analyse domestic trends, international best practice approaches to basic banking, and identify options for CoFR agencies to support an industry-led solution to this issue. CoFR expects to publish this issues paper by the end of the year.