Kiwibank registered

By Phil Boeyen, ShareChat Business News Editor

Thursday 29th November 2001

Kiwibank has taken another step on its way to playing in the big league.

The Reserve Bank has announced that it has registered New Zealand Post Financial Services Limited as a bank, which allows it to test its systems and procedures in anticipation of opening for business early next year.

New Zealand Post Financial Services will trade under the name Kiwibank and has already appointed former Prime Minister Jim Bolger as its chairman.

Reserve Bank deputy governor, Rod Carr, says it's the first time in many years in which a new bank has been created from scratch.

"In recent years all other registrations have been by existing overseas banks or financial institutions that already had proven infrastructures."

Mr Carr says Kiwibank's registration will be taking place in two stages. Firstly, it will be registered as a bank, but only for the purpose of testing its systems and procedures.

"Thus, during this testing phase, it will undertake a series of real transactions, including making settlements with other banks, but it will not be opening its doors to the public. Registration in this way is necessary for these test transactions to be lawful.

"Once these tests are successfully completed, and other relevant conditions satisfied, New Zealand Post Financial Services Limited (Kiwibank) will then be able to begin business with the public."

The latest brings the total number of registered banks in New Zealand to 17.

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