A new New Zealand bank

Three finance companies are planning to merge to become a bank. At the moment, there is no name for this bank. The three finance companies are the Canterbury Building Society, Southern Cross Building Society and Marac finance which is owned by Pyne Gould Corporation. It would be listed on the stock market so that people could buy shares. The plan is to start the bank with $2.2 billion, 360 staff and 70 branches throughout the country. The new bank could be ready to open next year.

All our major banks are owned by Australia. After the BNZ was bought by the National Australia bank in 1992, the Taranaki Building Society was the only New Zealand owned bank for the next 10 years. Then in 2002, the government set up Kiwibank which has been very successful. Kiwibank branches are in Post Shops and some book shops so they don’t have to buy their own buildings or pay their own staff.

Many people were worried last week when the Minister of Finance and the Prime Minister said that the government might sell part of Kiwibank in the future. Before the 2008 elections, John Key promised that a National government would not sell any government owned companies before the 2011 elections. If Kiwibank is sold, shares could be listed on the stock market just like the new New Zealand bank.

Questions

Why are some people worried about the government selling companies which are owned by the government?
Does it matter if our major banks are Australian-owned?