The proof that New Zealand has an inefficient banking sector that primarily serves the interests of its shareholders and executives as opposed to the social utility of connecting savers and borrowers in both residential and commercial activity is proven by the call by the Property Council for $1 billion dollars to develop Wynyard Quarter.
There is more than $100 billion on deposit in New Zealand banks earning a low rate of return.
If the banks were entrepreneurial, employed intelligent people or implemented safeguards against wet-behind-the-ears bankers getting taken for a ride by wide boys they could easily syndicate $1 billion in finance domestically.
Their foreign exchange trading desks could move $1 billion in less than an hour, yet apparently we are starved of capital.
Because of asset-price inflation and restrictions on housing development, the banking sector has no incentive to provide finance for anything other than housing.
New Zealand needs to look overseas for business capital because the housing market dominates the lending books of banks.
Everyone forgets that the finance companies collapsed over loans on land that has now in some cases surpassed the value it had when the loans were called in.
Where is the investigate reporting into that arbitrary reallocation of wealth?