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NZ First on Economy
Economy · In depth

Buying back the BNZ to build a New Zealand owned bank

In depth — from NZ First’s policy document

NZ First would buy the Bank of New Zealand back from National Australia Bank and merge it with Kiwibank to form the National Bank of New Zealand — fully Crown owned, commercially run, and big enough to compete with ANZ, ASB and Westpac. It would not come out of the operating budget: the funding stack is a sovereign banking bond, long-dated Crown debt, a limited tranche of Future Fund and ACC money, and Kiwibank’s existing capital.

The plan
Buy back BNZ
From National Australia Bank
Merged with
Kiwibank
To form the National Bank of New Zealand
Australian-owned share
~85%
Of the banking system, held across four banks
Kiwibank today
Just under 8%
Of the mortgage market
BNZ cash earnings
$1.5bn+ a year
Which they say would comfortably service the debt
Ownership
Fully Crown owned
Commercially run, not a government department
How the buy-back would be funded
  • A New Zealand Sovereign Banking Bond, marketed to domestic retail and KiwiSaver investors
  • Long-dated Crown debt at current sovereign rates
  • A limited tranche of NZ Future Fund and ACC investment, as commercial equity at arm’s length and a market rate of return
  • Retention of Kiwibank’s existing capital base
Countries the policy points to
  • Singapore
  • Norway
  • Germany
  • Canada
  • France

How it would work

The buy-back and the merger

BNZ would be bought back from National Australia Bank and merged with Kiwibank into a single Crown-owned commercial bank with the scale to compete with the other majors. The document notes that when National sold BNZ to NAB in November 1992 it had six of every ten New Zealand banking customers.

The case they make about the market

Four Australian-owned banks control around 85 percent of the system and, the document says, lend New Zealand deposits back at margins materially higher than their parents earn in Australia. It cites the Commerce Commission’s 2024 personal banking market study as finding a structurally uncompetitive market with no sustained pressure to compete on price and no realistic threat of new entry at scale. Kiwibank was created in 2002 as a domestic challenger but holds just under 8 percent of the mortgage market.

Paying for it without touching the operating budget

A blended funding stack rather than a single source, built so that BNZ’s own earnings service the debt raised to buy it. The document describes the result as self-financing in expectation, with the fiscal impact being a one-off balance-sheet expansion rather than an ongoing cost.

What it would and would not be

Not a government department, and the document is explicit that it does not regard this as nationalisation. A fully commercial bank with a Crown shareholder, intended as a strategic domestic lender for agriculture, infrastructure and SME growth on long-horizon terms. The management structure is deferred to later campaign announcements.

In their own words

“Four Australian owned banks control around 85 percent of the system.”

Backing a New Zealand Owned Bank · Opening statement of the problem

“Successive governments have starved it of the capital it would need to be a genuine system-shaping competitor.”

Backing a New Zealand Owned Bank · On Kiwibank

“The buy-back is self-financing in expectation. The fiscal impact is a one-off balance-sheet expansion, not an ongoing cost.”

Backing a New Zealand Owned Bank · On the funding stack

“This is not nationalisation – this is taking back our country.”

Backing a New Zealand Owned Bank · On what the policy is

What the document doesn’t settle

Points the document defers or leaves undefined. These are gaps in the document, not criticisms of the policy.

  • No purchase price is given, and the document does not say whether National Australia Bank is willing to sell or what happens if it is not.
  • The management structure is explicitly deferred to “upcoming campaign announcements”.
  • How much of the NZ Future Fund and ACC would be committed is described only as a limited tranche.
  • Whether both brands survive the merger, and what changes for existing Kiwibank customers, is not addressed.
  • “Self-financing in expectation” rests on BNZ’s current earnings continuing, and no sensitivity to a downturn or a rate cycle is offered.
  • The comparison countries are named without saying which of their state-owned banks are comparable in structure or share.
Summarised from Backing a New Zealand Owned Bank, published by New Zealand First. Read 2026-08-16.
Read the full document
Back to NZ First on Economy

Coverage at a glance

Which party holds a published position on which topic.

Open the compare tool →

Swipe across to see all 11 topics — the party column stays put.

PartyEconomyHousingHealthEducationClimateEnvironmentCrime & JusticeTreaty & Māori AffairsImmigrationForeign PolicyDemocracy & Government
National
Published position∅ No stated position (verified) Not captured yet
∅
Labour∅∅∅∅∅∅
Green
ACT
NZ First
Te Pāti Māori
TOP
Also contesting, without seats in Parliament
Women’s Rights
Animal Justice
ALCP
Conservative
Outdoors & Freedom
Vision NZ
Alliance
Free Palestine
NZ Loyal∅
Te Tai Tokerau∅