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.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- World's best airlines, airports; Cathay's upgrade bidding and more
- NZ Rugby flexes its muscles with AllBlacksTV.com
- Bad buzz plagues Ngāi Tahu honey venture as private equity circles
- The Puritan origins of Trump hatred
- 'Geostorm' movie shows dangers of hacking the climate – we need to talk about real-world geoengineering now
Most listened to
- Scales Corp CEO Andy Borland assesses likely immigration cuts
- Forsyth Barr’s Kevin Stirrat talks through the market reaction to the new government
- Iron Duke director Phil O'Reilly on how concerned businesses should be about the new Labour-led government
- New Sky TV NZ director Mike Darcey on the skills he brings from Sky UK, and what it's like working for Rupert Murdoch
- Nevil Gibson's back on Wall Street's darkest day and what has happened since
- NBR Radio: The best interviews, with Grant Walker — updated daily