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)


1 · Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR 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
  • 0
  • 0

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 0.6617 0.0000 0.00%
AUD 0.9312 0.0000 0.00%
EUR 0.5883 0.0000 0.00%
GBP 0.4560 0.0000 0.00%
HKD 5.1599 0.0000 0.00%
JPY 74.9170 0.0000 0.00%

Commods

Commodity Price Change Time
Gold Index 1237.4 -9.140 2016-02-12T00:
Oil Brent 34.0 -0.490 2016-02-12T00:
Oil Nymex 31.9 3.190 2016-02-12T00:
Silver Index 15.8 0.000 2016-02-12T00:

Indices

Symbol Open High Last %
NZX 50 5987.0 5987.0 5987.0 -0.89%
NASDAQ 4307.3 4340.1 4266.8 1.66%
DAX 8854.4 8967.5 8752.9 2.45%
DJI 15691.6 15974.0 15660.2 2.00%
FTSE 5537.0 5707.6 5537.0 3.08%
HKSE 18278.8 18482.3 18545.8 -1.22%
NI225 15426.3 15437.2 15713.4 -4.84%