Regional emphasis of banks ‘preserved’

Press, 22 July 1986, Page 2

Regional emphasis of banks ‘preserved’

The regional emphasis of the country’s trustee banks would be preserved under their proposed merger, according to the new managing director of the merged corporate body, Dr Don Brash. The local nature of the trustee banks was an important asset that the corporate body did not want i:o lose, Dr Brash said in Christchurch yesterday. The merger, which would take several months and an act of Parliament to finalise, was really the formalisa-

tion of an informal structure that had existed for years through the Trustee Banks Association. It would enable the banks to use the muscle of their $4 billion in assets to compete with other banks in the changing economic climate, to provide better services for customers, entice a broader range of customers, and ensure greater efficiency, he said. Eleven of the country’s 12 trustee banks have agreed to merge. Talks with the Taranaki Savings Bank, which had decided to go it alone, would be held within the next few weeks to try to reach some accord, said Dr Brash.

He expected that the trustee banks would offer wider services — particularly in commercial and International banking — within the next few weeks.

Trusteebank Canterbury is already using its merger name, Trustbank Can-

terbury. He emphasised that the corporate body — consisting of 17 directors — would act as an umbrella over the existing regional management base. Local trusts, community boards and part local ownership would be retained. Funds would primarily be invested locally.

It was conceivable, however, that Canterbury money could be used elsewhere if there was not the demand for its use in Canterbury, he said. The merged banks

would still emphasise “the local bank for local people,” with personal banking remaining a main service.

Customers could expect some advantages from the merger. Although interest rates appeared to be dropping generally, Dr Brash said he expected that the restructure might help it happen sooner in the trust banks. The Government would guarantee all deposits throughout the transition of the merger, for about five years.