The Commerce Commission's final report into New Zealand's banking sector is out.   

It says competition isn't working as it should be in the banking sector, and consumers are missing out as a result. 

The Commission says in a well-functioning market with strong competition, they'd expect to see more aggressive strategies to win customers from other banks. 

Part of its answer is giving Kiwibank greater access to capital, to make it a stronger competitor to the Australian-owned banks. 

Also part of the equation is rolling out open banking faster and making changes so it's easier for smaller banks to compete and for consumers to compare and switch banks. 

NZ Herald Wellington Business Editor Jenée Tibshraeny told Francesca Rudkin that the issue is that for Kiwibank to grow, it needs more capital, but the Government’s finances are tight at the moment. 

She said that in order for Kiwibank to grow, the Government would need to dilute its ownership and allow in capital from the private sector. 

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• Commerce Commission says stronger Kiwibank, open banking could shake up sector