The Greens have voiced their concern over the privatization of Kiwibank, opining that the sale will affect the economy negatively.

Green Party Co-leader, Dr. Russel Norman said that four of the foreign owned banks have sent 75% of their profits offshore without contributing much to the New Zealand economy, in the last five years.

"If the Government was to privatize Kiwibank, the dramatic flight of capital out of New Zealand by the foreign banks would become even more pronounced", he added.

Foreign-owned banks contribute to 90% of the baking market in New Zealand. The profits have surged largely. But their contribution to the recession recovery is nowhere to be seen.

Dr. Norman added that the sale of the Kiwibank will eventually land up in foreign hands, thereby losing the profits offshore.

The Parliamentary Inquiry into Banking in New Zealand had revealed that the sector lacks in competition. It also found that 70 basis points of Official Cash Rate cuts were not sent across to the customers.

Fder. Noram also noted that Kiwibank has, so far, reported better deposit and lending rates than the four foreign owned banks. It is the only competitor to the four giants.