The Bulletin
Men's Weekly


.

The government taking full ownership of Kiwibank is a bailout in all but name – what are the risks now?

  • Written by Martien Lubberink, Associate Professor of Economics, Te Herenga Waka — Victoria University of Wellington
The government taking full ownership of Kiwibank is a bailout in all but name – what are the risks now?Getty Images

With the transfer this week of Kiwibank’s assets to a state-owned company, the New Zealand crown has now taken full control of the bank. At an estimated cost of NZ$2.1 billion, the change of ownership has all the hallmarks of a government bailout.

Former owners NZ Post, the Accident Compensation Corporation and the New Zealand...

Read more: The government taking full ownership of Kiwibank is a bailout in all but name – what are the risks...