CBS Signs Up for Guarantee Scheme
|
|
Canterbury Building Society (NS) (CBS) | 4:08 pm, Monday 13 October 2008 | CBS | 4.000 |
 -0.300 |
(-6.98%) |
The Government’s promise to guarantee all retail deposits in the New Zealand financial system for the next two years is a strongly positive message to investors that the soundness of the country’s financial institutions is paramount, the chief executive of CBS Canterbury, Mr Bryan Inch, said today.
CBS Canterbury regards the announcement by the Reserve Bank and The Treasury of the Deposit Guarantee Scheme as “prudent” and the building society has applied today to opt into the scheme.
Mr Inch said he welcomed the responsibility shown by the New Zealand Government in terms of the growing international problems. “Equally we believe the move is supported by the strength and unique structure of the New Zealand banking sector”.
“There are many positive differences between New Zealand’s banking institutions and those operating internationally,” said Mr Inch. “The most notable is that the great majority of mortgage and commercial loans are repaid on a regular basis and on time.”
He said that CBS Canterbury’s prudent policies meant the organisation was well placed to meet the conditions of the application based on the requirements of its Trust Deed.
“Nevertheless, we believe that it is important that banking institutions react in a coordinated way to the Government’s measure so as to maintain stability and depositor confidence.
“Accordingly, CBS Canterbury has today completed an application for the building society’s deposits made by New Zealand citizens and tax residents to be covered by the Government guarantee.
“In doing so, CBS Canterbury expresses its strong belief that such support will not be needed within the mainstream banking industry.”
Mr Inch was commenting on his first day as CEO with CBS Canterbury in his home province after a senior role for Rabobank based in Sydney.
“I am impressed with the commitment of the CBS Canterbury team to safe and prudent lending to the local community.
“CBS Canterbury is in excellent financial shape, with very healthy investment inflows and we have a very low level of concern over our loan book.”
“I would not have moved from one of the largest and safest banks in the world to CBS Canterbury without doing my homework first.”
CBS Canterbury has a total asset base of $549m.
Bryan Inch
Chief Executive Officer
CBS Canterbury
For Further Information Please Contact:
Mr Bryan Inch
Chief Executive Officer
CBS Canterbury
Tel (03) 341 1406
Mobile 027 629 9765
Or
Mr Warren Head,
Head Consultants Ltd
Mobile (021) 340 650
Related Attachments
Please login to My NZX to view the attachment(s) for this announcement