Reserve Bank gives thumbs up to Heartland licence

The Reserve Bank has approved Heartland New Zealand's application to be a licensed bank, ending a long wait for the lender.

The central bank says Heartland has become New Zealand's 22nd registered bank.

Securing a banking licence has been a key plank of Heartland's strategy in a shift away from a new regulatory regime that imposed stricter conditions on non-bank financial institutions.

"Heartland, as a bank, needs to retain the advantages of being small: local and accessible, at all times seeking to be innovative," Heartland chief executive Jeff Greenslade says in a statement.

Shares in Heartland rose 3c following this morning's announcement and are trading at 70c on the NZX.

Last month Heartland had its investment grade BBB- credit rating affirmed with a stable outlook by Standard & Poor's, which cited the lender's strength as very strong capital and earnings assessment, good geographic and business diversity, and sticking to its timeline for its post-merger plan.

Heartland had been hoping to update shareholders on its strategy as a fully-fledged bank at the annual meeting on November 30, and give them "greater comfort that the outcome on bank registration can be meaningfully addressed at the meeting."

Its expectation of a November decision was based on the customary pace for New Zealand incorporated applicants.

(BusinessDesk)

This article is tagged with the following keywords. Find out more about My Tags

1 Comment & Question

Commenter icon key: Subscriber Verified

Let me be the first them to say well done to the team at Heartland.

Funny that the comments are so few when it's positive news......... I guess some just enjoy being glass half empty sort of people.

Reply
Share

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7860 0.0035 0.45%
AUD 0.9117 0.0014 0.15%
EUR 0.6269 0.0027 0.43%
GBP 0.5013 0.0020 0.40%
HKD 6.1024 0.0342 0.56%
JPY 93.0210 0.5220 0.56%

Commods

Commodity Price Change Time
Gold Index 1193.9 -13.950 2014-11-19T00:
Oil Brent 78.8 0.360 2014-11-19T00:
Oil Nymex 74.5 -0.010 2014-11-19T00:
Silver Index 16.3 0.120 2014-11-19T00:

Indices

Symbol Open High Last %
NZX 50 5522.1 5538.0 5522.1 0.09%
NASDAQ 4655.2 4703.0 4675.7 0.56%
DAX 9460.4 9487.7 9472.8 0.12%
DJI 17677.3 17720.4 17685.7 0.19%
FTSE 6696.6 6696.8 6696.6 -0.26%
HKSE 23401.0 23461.0 23373.3 -0.10%
NI225 17407.7 17407.7 17288.8 0.07%