High barriers to entry creates credit premium: RBNZ’s Bollard

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Large barriers to entry and the market dominance enjoyed by franchise banks in New Zealand have resulted in higher costs for credit, Reserve Bank of New Zealand governor Alan Bollard said on Saturday.

"Although some of the smaller banks have succeeded in nipping at the heels of the larger banks and stimulating competition in some markets, overtaking the market share of the larger banks has proven to be a very tall order. It is likely the franchise, or brand value, of the large New Zealand banks

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