Reserve Bank Governor Adrian Orr has called out the nation's biggest banks over their profit margins and lack of competition

The banks have since claimed their margins in New Zealand are bigger than they are overseas - thanks to certain capital requirements.

KPMG partner John Kensington says Orr's comments were a little harsh - but more competition is needed for the sector.

"Think back five years ago - it was hard to change your telco or your power company. Now that's easy. So open banking, if people adopt it and people can be bothered changing their banks, will lead to more people changing their banks."

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