Weak credit demand could curtail earnings growth for the big New Zealand banks, says credit rating agency Standard and Poor's.

Academic says it's important for banks to be seen as socially responsible.

New Zealand banks have been raising billions of dollars in recent weeks by doing something their Australian parent companies can not yet legally do - issue covered bonds.

Glass maker Metro GlassTech is the latest heavily indebted overseas private equity owned business to get into strife with its bankers, says one report.

Kiwibank has the "ambition" but not the "capability" currently to take on the role of Government bank.

National lacks the courage to tackle Australian banks which have saddled NZ with billions in debt, says Greens co-leader Russel Norman.

There is nothing wrong with ministers accepting hospitality from the Government's banker Westpac, and it won't have any bearing on the decision that will follow a competitive tender for the contract, the Prime Minister says.

Kiwibank has revealed it borrowed $927m on short term 'hot' European money markets in five months and has quickly lent on much of it into the housing market.