Mr Lake Opens Savings Bank

Press, Volume CI, Issue 29890, 2 August 1962, Page 12

Mr Lake Opens Savings Bank

In one sense the new savings bank would be a competitor with the Post Office Savings Bank. They would be providing similar services and they would be trying to attract similar types of savings, said the Minister of Finance (Mr Lake) at the official opening of the Canterbury Savings Bank yesterday. The ceremony was held outside the bank’s premises in Hereford street and was attended by representatives of local bodies and invited members of the public.

“On the other hand, both banks are engaged in encouraging thrift and promoting savings, and it has been suggested that this will lead to an increase in overall savings—not merely a diversion of funds from the post office to the savings banks." said Mr Lake. “It is certain that the Government will watch the results of the Waikato Savings Bank, which was opened in 1959, and the Canterbury Savings Bank, with considerable interest.’ Mr Lake said that the new bank would bring tremendous benefits to Christchurch. When fully operational, it would be able to place half its total investments in the district. This would be a valuable contribution to the future growth and development of Christchurch. The Government had always exercised fairly close supervision over operations of trustee savings banks, and laid down certain requirements for their operations, he said. This was not, as the critics might suggest, entirely with the aim of protecting the Post Office Savings Bank, he said. There were two very important reasons why the

Government had to be concerned with the operations of trustee savings banks. In the first place, the Government guaranteed the depositors’ funds in the banks and this guarantee was backed, of course, by the taxpayer. In the second place it was vitally important that there should never be a commercial failure in a savings bank in New Zealand. "It is unlikely, I know, but the Government must be doubly careful when most of the funds come from small savers on lower incomes.” Mr Lake said he welcomed the opening of the bank because all sections of the community stood to gain from, the building up of savings and investments.

He congratulated the Canterbury public on giving the bank full support and the members of the initial promotion committee and the present trustees for the work they had done in making the bank a success. He added that the Government was trying to increase savings in all sections of the economy and the Canterbury Savings Bank could make a valuable contribution to building up savings and assisting its own district.