CBS Canterbury said gaining a banking licence will be a significant hurdle for the financial institution created by its proposed merger with Southern Cross Building Society and Pyne Gould Corp.The merger aims to create a South Island-based bank listed on
CBS Canterbury said gaining a banking licence will be a significant hurdle for the financial institution created by its proposed merger with Southern Cross Building Society and Pyne Gould Corp.
The merger aims to create a South Island-based bank listed on the stock exchange.
"If the merger does occur, it will define the future of CBS Canterbury, as part of a new group dedicated to servicing the banking and financial needs of 'heartland' New Zealand," CBS Canterbury said in its annual report released today.
A licence was crucial to the concept of the merger being explored, CBS Canterbury said.
"However, we are confident the scale and financial resources created by the new partnership would be sufficient to enable this requirement to be met."
As chairman Gary Leech commented in last year's annual report "Quite frankly we aspire to become Canterbury's bank!".
CBS Canterbury also said today that James Mitchell, a former senior ASB executive, would be project manager for the proposed merger.
He will be responsible for preparing a merger implementation agreement and seeking necessary approvals. Subject to obtaining those approvals, he will project manage the integration of the three businesses. He reports directly to Jeff Greenslade, the project director.
On May 31 CBS Canterbury was approved for the extended Crown retail deposit guarantee scheme.
Sign up to get the latest stories and insights delivered to your inbox – free, every day.
