While welcomed, they are less significant than Finance Minister Nicola Willis claims.
She talked a big game as is usual from Labour and National politicians when confronting the lack of sector competition in this small country. Big players are, again, put on notice. Threats are issued.
The large corporates — supermarkets, building supply companies, petrol companies, electricity generators or banks — sway with the hot air blowing in their direction. They make, or are compelled to make, a few changes while maintaining their dominant market positions.
To be fair, both this government and the last, while wary of radical options, are making efforts.
The usual first step is a market study; the Commerce Commission is the regular vehicle.
It predictably finds a limited number of players wield excessive market power. It lists various recommendations and options. Like the government, it talks tough while eschewing anything extreme.
The commission found that the four large banks, ANZ, BNZ, ASB and Westpac, dominated personal banking and were more profitable than most other international banks, including the four Australian parents.
The commission produced 14 recommendations which it said would create "more enduring disruption". Ms Willis earlier promised to follow these up, and Cabinet agreed last week.
Ms Willis said Kiwibank’s parent company and Treasury have been directed to talk to New Zealand KiwiSaver funds, New Zealand investment institutions and New Zealand professional investor groups about investing up to $500 million in the bank.
This will allow for billions of dollars more lending, although Kiwibank will remain much smaller than the big four.
There must also be questions about how much it will be a price "disruptor". It will still have proportionately larger fixed operating costs, and it is busy catching up on technology. And its highest profits will likely not be achieved by disrupting the status quo.
Ms Willis expects a report on the capital raising plan in the middle of next year when Cabinet will make the call. The possibility of a sharemarket offering has been floated but not before 2028.
The banks continue to drag their heels on "open banking". This change should make it easier to switch accounts, for customers to control their data and allow third parties to help them use that information in advantageous ways.
The pressure to get on with it and perform on open banking continues. and the Reserve Bank is being told to consider and review banking competition issues in its decisions. This includes minimum capital thresholds for new banks, restrictions on the use of the word "bank", and dismantling barriers to housing on Māori freehold land.
The moves and recommendations are in the right direction, notably the plan to give Kiwibank more clout. It is debatable, however, how much difference they will make. Hopefully, the effects are cumulative and make the big four more innovative and more competitive for New Zealand customers.
The banks are also aware of threats around the edges of their healthy margins. Businesses like Wise and Revolut are quickly moving into New Zealanders’ consciousness for overseas money transfers and travel money.
The differences in fees and exchange rates highlight how grasping the banks have been in this zone.
Nevertheless, as long as the large banks can dominate home mortgages, everyday banking accounts and term deposits they will continue to make hefty profits.
At least, Ms Willis and the government are acting on the Commerce Commission’s recommendations. In particular, they are banking on Kiwibank to make a difference.
At the same time, they turn to the usual bluster to try to convince the public that they are making a real difference.
As Ms Willis said: "The big banks are on notice. The government is explicitly leaving open the possibility of further action if we don’t see enough progress."
