There's a view a merger by Heartland and TSB won't hand the big four banks a massive blow. 

Heartland Bank has struck a deal to buy TSB for $620 million, pending consultation and regulator approval. 

Massey University banking professor Claire Matthews says the combined bank will still be smaller than the big four, and Kiwibank. 

She says a lot of work's still needed to increase competition.

"It's not necessarily going to open up a huge access to capital, which is what's really needed for them to grow, and to become truly competitive." 

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There's a view a merger by Heartland and TSB won't hand the big four banks a massive blow.&nbsp;
Heartland Bank has struck a deal to buy TSB for $620 million, pending consultation and regulator approval.&nbsp;
Massey University banking professor Claire Matthews says the combined bank will still be smaller than the big four, and Kiwibank.&nbsp;
She says a lot of work's still needed to increase competition.
"It's not necessarily going to open up a huge access to capital, which is what's really needed for them to grow, and to become truly competitive."&nbsp;
LISTEN ABOVE

With a straight down the middle approach, Heather du Plessis-Allan Drive on Newstalk ZB delivers the very latest news and views to New Zealanders as they wrap up their day.

Heather du Plessis-Allan Drive

Claire Matthews: Massey University banking professor on whether the merger between Heartland and TSB will boost competition

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/f4096015-d694-45e6-a6a4-b45d00625975/transcript