The Government's received advice on how Kiwibank can better compete with the large Australian-owned banks.  

It's in response to the Commerce Commission market study on personal banking.  

Documents released under the Official Information Act show Treasury wants to look at exploring use of private capital, including an Initial Public Offering. 

Massey University banking expert David Tripe told Ryan Bridge there could be issues with an NZX listing or other private parties getting involved.  

He says returns aren't especially good, and that's one of the big challenges with the IPO option. 

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