Savings Banks Seek Wider Scope

Press, Volume CII, Issue 30100, 6 April 1963, Page 12

Savings Banks Seek Wider Scope

• (NZ Press Association) WELLINGTON, April 5. A decision on national coverage for trustee savings banks will be given by the Government as soon as possible. This assurance was given today by the Minister of Finance (Mr Lake) to a deputation representing the Associated Trustee., Savings Bank. A statement released by th- deputation after the meeting said that Mr Lake said the question of Offending toe 25-nule limit W the opening of trustee savings bank

branches would shortly be considered by toe Government. In its submissions toe deputation maintained that trustee savings banks together with the Post Office Savings Bank, had put New Zealand in fourth place in the world in the amount of per capita savings. The deputation also said that, with national coverage, there should be no necessity foi savings departments in trading banks to be considered, as trustee banks and the P.OSB. could cover the savings field adequately. The deputation pointed out that truste- savings banks were severely restricted in their operations bv the 25mile limit for branches, and in many otoe. ways. Other points made were;—

(1) Numerous requests were being made by various cities and towns for the establishment of new banks or for toe right to have branches of existing savings banks establish e A outside toe 25-mile limit (3) Trustee savings banks were true community banks, investing haL* their deposits in Government stock and half tn mortgages and local bod debentures. (3) They distributed ell toeir profits, except those put in reserves, by donations to charities and they bad a strong community appeal which stimulated savings. <4) ft was tor national, as weir as local benefit for them to have the right of national coverage. The deputation asked Mr

Lake to amend toe act to allow for toe creation of trustee savings bank districts to give full national coverage, and that new banks be chartered where necessary and where communities could not be served by a branch of another trustee savings bank. It was pointed out that Parliament specially amended the act tn 1957 to allow new trustee savings banks to be established, and it was urged that this new policy should be implemented to give an opportunity to all communities to benefit from a ravings bank. The deputation comprised Messrs W. A. Hudson, MJ*, for Mornington (president), Messrs W. T. Anderton, E. H Halstead, A. L Tompkins. J. T. Shaw and W. Hilliker.