RBNZ says higher operating costs a bigger competition challenge for small banks than regulatory capital settings

1) Always strikes me as odd reading these saying "For paying subscribers" - I am one, but apparently the wrong type

2) The title is a laugh and really explains the whole article that I can't read

"RBNZ says higher operating costs a bigger competition challenge for small banks than regulatory capital setting"

It's another dig from RBNZ about Commerce Commision feedback on banks. Saying that the operating costs are a bigger challenge than capital settings may be true, but it doesn't mean the regulatory capital settings aren't a challenge, and aren't wrong.

Commerce Commision said something along the lines of "A FHB with 80% LVR is just as risky on TSB's books as Westpac's, so why does TSB need to hold more capital in the pocket for the same mortgage?"

They are right, and RBNZ has no good counter-argument, so continues to say things like the above, and "we looked at it not long ago". Distract and Obfuscate.