13 Dec 2010

Call for banking reforms

10:01 am on 13 December 2010

The banking union Finsec says New Zealand should follow Australia's lead and reform the banking industry.

Reforms announced on Sunday in Australia include banning mortgage exit fees from July and increasing the power of the Australian Competition & Consumer Commission to investigate price collusion.

Home borrowers will also get a fact sheet outlining monthly mortgage repayments and how they can shop around for a better deal.

Finsec general secretary Andrew Cassidy says New Zealand should be looking at reforms as well, because customers deserve more transparency in the banking sector.

But some financial experts say there's no real need for changes because the market did away with exit fees for early repayment on floating rate loans years ago, and the Commerce Commission already has wide ranging powers.