Wow, Grace opened our eyes about the Reserve Bank with her 4th speech entitled “bonsai and a pine”. We thought that the Reserve Bank was only interested in controlling Mortgage Lending, but Grace made us think much wider on the subject of Banks especially some of the world’s largest seeking to operate in the New Zealand market place and indeed if we actually want them here or understand why they may want to be. She kept banking jargon out of her speech by making a beautiful comparison of small controlled bank subsidiaries being bonsais trees closely tended by gardeners with restricted growth, but let us consider if the control are taken off then the bonsais how they can grow into tall unfretted pines. The questions is do we want Chinese pine tree banks to compete with the Australian pine tree banks?
Congratulations Grace for educating us so we do not become a ‘free for all’ country for banks without understanding why.