Kiwibank chairman Rob Morrison and deputy chair Rhoda Phillippo have resigned, with current director Susan Macken named as Morrison's replacement. The resignations are effective as of the state-owned lender's board meeting on Thursday.
Morrison and Phillippo are departing following what Kiwibank called a transition period that saw new shareholders the New Zealand Superannuation Fund and Accident Compensation Corp settle their investment in Kiwibank's parent, Kiwi Group Holdings, in October 2016. But it also comes hard on the heels of their decision along with existing shareholder NZ Post, announced last week, to pump in an additional $247 million to ensure the bank's capital stays within the regulator's limits.
The extra capital was provided after Kiwibank abandoned plans for a A$175m bond sale last month after being told those instruments didn't meet the Reserve Bank's capital adequacy framework and that earlier issues of a tier 2 convertible subordinated bond and additional tier 1 perpetual bond also didn't comply.
The Reserve Bank is reviewing the definition of bank capital, the measurement of risks that the banks face and the minimum capital requirements and buffers to set up a regime that provides confidence in the banking sector.
Morrison joined Kiwibank's board in 2011 but Phillippo is a relative newbie, having become a director last year. The board will appoint a new deputy chair. Macken is a former director of Bank of New Zealand and her other current boardroom positions include deputy chair of Tamaki Redevelopment Co and director of the Treasury's advisory board.
