Mark Wilkshire: The Co-Operative Bank chief executive on the new changes set to impact the Reserve Bank

There's hopes a new move by the Reserve Bank will bring about positive changes for New Zealand's banking sector.

It is changing the mix of capital banks are required to hold, aiming to reduce funding costs. 

It is also targeting closing the gap between bigger and smaller banks - making the market more competitive.

The Co-Operative Bank chief executive Mark Wilkshire says this will encourage competition and remove certain constraints impacting the banking sector.

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