Credit union first to receive Non-Bank Deposit Taker Licence

Credit union first to receive Non-Bank Deposit Taker Licence

NZCU Steelsands, a credit union based at New Zealand Steel Ltd at Glenbrook, is the first Non-Bank Deposit Taker (NBDT) to be licensed by the Reserve Bank of New Zealand.

The Non-bank Deposit Takers Act 2013, which became effective on 1 May 2014, requires every NBDT to be licensed by the Reserve Bank by 1 May 2015, and the cooperatively owned credit union is delighted to be the first licensee.

“As this was a completely new licensing regime, it’s naturally been a bit of a learning curve for everyone involved” said NZCU Steelsands General Manager, Rhonda Clare.

“We’re really delighted that the hard work put in by both our staff and the New Zealand Association of Credit Unions in getting this across the line has been rewarded with a licence issued under this new legislation.”

The New Zealand Association of Credit Unions (NZACU) is the industry body representing 20 credit unions and mutual building societies throughout the country, and is also very pleased for NZCU Steelsands.

“Although they don’t have to be licensed until May 2015, we are thrilled NZCU Steelsands has received a licence” said Henry Lynch, Chief Executive of NZACU.

“It’s a testament to the commitment our Members have to ensure they are ahead of the game when it comes to compliance wherever they can. More importantly, it provides surety for NZCU Steelsands’ 3,000 members that they can continue to receive the exceptionally high level of service and support that credit unions throughout New Zealand provide for their members day in day out.”

“Although it’s been a lot of work, the new licensing regime will give customers of reputable organisations such as NZCU Steelsands added comfort knowing that they have undergone a very stringent review process by the RBNZ in terms of their ability to comply with the Non-Bank Deposit Takers Act and the suitability of directors and senior management.”

Cooperatively owned credit unions and building societies in New Zealand currently have over 200,000 members, and have a long history of helping people from all walks of life sort out their money worries to achieve better financial management. They provide a wide range of financial services, like savings accounts, loans and insurance, and any profits are returned to the members in a combination of ways, such as through fairer fees, interest rates and local community involvement.

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