State-owned lender Kiwibank is back within the terms of its bank registration after the departure of New Zealand Post director Murray Gribben evened up the number of independent directors on the board.
Gribben resigned from the boards of New Zealand Post and Kiwibank on Nov. 30 to take up a new role as chief executive of Crown Irrigation Investments, the government's new entity designed to act as a bridging investor for regional water infrastructure development. He was appointed CEO in September, and was scheduled to start the new role on Nov. 18.
His departure means Kiwbank now has three independent directors on its six-strong board, evening up the numbers between independents and non-independents. That brings it back into compliance with its registration conditions to have at least half the board independent.
Kiwibank has been operating outside the conditions of its registration since the unexpected resignation of independent director Grant Paterson on June 18 due to ill-health, something it's been trying to rectify since.
Earlier this month Kiwibank was named as the second bank to face class action over the fees it charged on overdrafts, late credit card payments and bouncing cheques, though it has yet to quantify any potential liability it might face from the suit.
Kiwibank is seen as the lynchpin in parent NZ Post's future, and will need more capital in the next few years to meet regulatory obligations to hold more top tier capital on its books and overhauling its business systems before funding growth.