At an estimated cost of $2.1 billion, the change of ownership has all the hallmarks of a government bailout. And finally, the transfer ensures that “all future profits remain in the country – unlike the Australian banks”. In addition, New Zealanders holding shares in Australian banks will receive dividends. Other small banks remain well capitalized and do not face the same challenges as Kiwibank. And the government will want to prevent Kiwibank from taking too much risk, because that would endanger the future of the bank itself.

Source: New Zealand Herald August 27, 2022 20:10 UTC