BNZ accents loan care

Press, 5 December 1989, Page 46

BNZ accents loan care

Wellington reporter Restructuring of management and lending policies, and bad debt monitoring characterised the first six months of this financial year for the Bank of New Zealand, according to the half year report, published this week. The bank's chairman, Mr Syd Pasley, outlined in the report moves under way to turn BNZ’s performance around. Lending policy and credit control procedures were being instituted following recommendations by Citicorp Consultants.

A debt recovery unit was also set up to “protect the security of advances made to organisations which are now in liquidation, receivership, or other forms of difficulty. “While this unit has been very successful, many cases will take a considerable time to work through,” Mr Pasley said. A “flatter, more responsive” management structure was also being put in a place to improve communication and reporting. Initiatives such as these were expected to make fundamental improvements to

BNZ’s cost structures and competitiveness over the next 12 to 18 months.

BNZ’s return to profitability in the first half of the year was a sign of progrss towards long-term recovery, said Mr Pasley. .

‘“Much of this progress is not immediately apparent, and may take some time to emerge.

“However, the bank is now in a strong position to recover its momentum as the leading financial institution in New Zealand.”