A high-powered microscope will be trained on New Zealand's banks.

The Government has just confirmed a Commerce Commission probe into banking sector competition.

Top of mind will be understanding competition issues and barriers new market competitors face, as well as looking into consumers' ability to switch banks.

The Commission will also investigate banks’ profitability and other financial measures.

A preliminary issues paper will be released in August, but the study isn't due back until the same time next year.

Simplicity Managing Director and founder of KiwiSaver provider Simplicity Sam Stubbs told Stuff the enquiry is four years too late, but it's good it has finally arrived.

Stubbs joined Simon Barnett and James Daniels to discuss the announcement.

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