Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ’s newest bank: PSIS becomes The Cooperative Bank

NZ’s newest bank: PSIS becomes The Cooperative Bank

Oct. 26 (BusinessDesk) - PSIS Ltd has become The Cooperative Bank Ltd and it will pay “dividends”, styled as rebates, to its 127,000 customer owners from surplus profits in the future.

PSIS became a registered bank and adopted a new name from today.
Tomorrow Steven Fyfe and Ross Wilson join its board, increasing its size to nine people, but the bank does not want to list on the sharemarket, saying that would create difficulties with its cooperative principles.

"We are here to serve the interests of our members and our members are New Zealanders," chairman David Gascoigne said.

The bank intends to pay out profits to members by way of a rebate. The first rebate could be paid as early as May or June next year based on the profit in the year to March 31, 2012.

Rebates will only be paid when sufficient profit is made. Members will get different amounts calculated on a relationship index which measures the amount of business they do with the bank.

The Cooperative Bank is registered a cooperative company. Everyone who does business with it gets one share, which is not tradable and has no par value. The bank cannot be taken over.

Gascoigne said it was New Zealand's first cooperative bank. The structure existed around the world and bank regulator the Reserve Bank of New Zealand was comfortable with it.

PSIS has come a long way since it was placed in statutory management in 1979 and funds were frozen for several years. It emerged from its problems in 1987 and in 1995 membership opened to all New Zealanders. The name Public Service Investment Society was changed to PSIS Ltd in 1998.

Chief Executive Girol Karacaoglu said the new name would to remove any lingering perceptions that the organisation existed for public servants.
The cooperative model for banks was hugely successful worldwide, including during the global financial crisis, he said.

The bank would stick to personal banking while diversifying from a lending portfolio that is 90 percent mortgages. It was not signalling a push into commercial lending beyond to small businesses.

The Cooperative Bank wanted to do more insurance business but had no ambitions to operate as a standalone entity in the funds management sector.

It currently has a market share between 0.6 percent and 0.7 percent and is aiming to grow faster than its bank peers but is not chasing huge growth.

In July PSIS members voted in favour of amending its trust deed so it could become a bank.

PSIS already offers current accounts, savings accounts, term deposits, insurance, personal loans and home loans.

The new bank gained an upgrade in May to its Standard & Poor's long term credit rating to BBB minus with an outlook of stable.

The 83-year-old institution has more than $1 billion in deposits, which are its main source of funding.

There are now 21 registered banks in New Zealand. The Reserve Bank of New Zealand has developed minimum prudential and governance requirements for non-bank institutions since it was made the sole prudential regulator of the New Zealand financial system.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news