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 0.8012 0.0052 0.65%
AUD 0.9077 0.0006 0.07%
EUR 0.6252 0.0028 0.45%
GBP 0.4952 0.0024 0.49%
HKD 6.2173 0.0415 0.67%
JPY 85.2240 0.1390 0.16%

Commods

Commodity Price Change Time
Gold Index 1244.2 5.700 2014-10-20T00:
Oil Brent 85.4 -0.760 2014-10-20T00:
Oil Nymex 82.8 -0.040 2014-10-20T00:
Silver Index 17.3 0.020 2014-10-20T00:

Indices

Symbol Open High Last %
NZX 50 5197.9 5238.9 5197.9 0.68%
NASDAQ 4254.2 4316.9 4258.4 1.35%
DAX 8819.3 8834.7 8850.3 -1.50%
DJI 16373.1 16401.6 16380.4 0.12%
FTSE 6310.3 6320.3 6310.3 -0.68%
HKSE 23073.4 23231.5 23070.3 -0.25%
NI225 15115.3 15115.3 15111.2 -1.66%