A NEW BANK.

Otago Daily Times, Issue 20452, 5 July 1928, Page 8

A NEW BANK.

The announcement that a Bill will be introduced in Parliament this session providing for the incorporation of a new Bank, which shall carry on business in New Zealand, is of distinct public interest. It may be recalled that Sir Joseph Ward on one occasion expressed the opinion in a public address that New Zealand was “ underbanked.” The statement created a good deal of surprise at the time and the view that was generally held was that the banking facilities that were available were sufficient for the requirements of the Dominion. That was several years ago and the operations of the trading banks that are engaged in business in this country have been considerably extended in the intervening period. It is to be observed, however, that the tendency in recent times has not been towards the establishment of ■ additional banking corporations but towards an amalgamation of banking interests. The movement in the direction of banking amalgamations nas been very marked in Australia in the past ten or eleven years. During this period no fewer than ten banks have been absorbed by other banking corporations that are operating in the Commonwealth. There remain, in addition to the Commonwealth Bank, seventeen joint stock banks in operation there to serve the needs of a population that is four times in excess of that in New Zealand where there are six banks of issue. It was hinted a few months ago that one of the Australian banks which is not at present represented in New Zealand contemplated the opening of branches in the Dominion, but there is no reason to connect that suggestion with the proposal for the establishment of another bank in this country, since the legislation that is to be brought forward is apparently promoted on behalf of an entirely new corporation which is in process of formation.