The Government's beefing up Kiwibank - at the request of the Commerce Commission.

Its report on banking has found the sector isn't competitive enough, and offered up 14 recommendations.

Simplicity co-founder Sam Stubbs says the banks would be foolish to ignore Government warnings.

He says the Prime Minister's telling the banks - the game is up.

"Remember, the only person that can seriously do damage to the big banks in New Zealand is the Government, because they've got regulation powers."

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