ASB guarantees safe funds for Y2K

By Richard Braddell

WELLINGTON - ASB Bank is to guarantee that funds in customer accounts and account details will be safe during the roll-over into the new year.

The move, which mirrors Y2K guarantees given by Westpac in Australia, will involve the issue of certificates which will be supplied with statements or will be available at branches.

"The certificate guarantees that banking records and funds held in customers' bank accounts at the close of business on 31 December 1999 will not disappear or be lost during the transition into the year 2000," ASB's general manager marketing and human resources, Barbara Chapman, said.

The certificate also confirms that funds will be available through normal channels from January 1 and branches will reopen as usual on January 5.

As yet, ASB's undertaking would appear to be the most categorical guarantee by any New Zealand bank.

Meanwhile, most other banks say their customers are comfortable with the assurances given so far, although Reserve Bank surveys of customer confidence which would confirm this have not been made public.

WestpacTrust said last week that it was likely to mirror a guarantee made in Australia by its parent, although other banks said an actual guarantee seemed unnecessary.

"Guarantee doesn't seem to apply in this situation. ANZ has come out black and white in media releases and in its own materials that people's funds are safe, so we see it as a statement of fact," ANZ Bank's public affairs manager, Samantha Shaw, said.

National Bank spokeswoman Cynthia Brophy said letters and brochures sent to National customers had not provided an explicit guarantee but existing customer rights provided adequate protection. "They ... are not offering anything that we aren't offering or any other bank is offering."

BNZ spokeswoman Sarah Hensley said customer confidence was high. But if ongoing research indicated a problem, something would be done.