ASB too quick off mark

Photo / Geoff Sloan

ASB's decision to launch a rescue package for Christchurch businesses may have delayed a wider recovery deal being put together by other banks.

ASB chief executive Barbara Chapman announced a $250 million programme two weeks ago, including interest-free and discounted loans for existing customers.

It has also set up a $100m fund to encourage new business into the region. But the initiative jumped the gun on an industry-wide package and is understood to have caused anger within the banking fraternity, which had been trying to put competition aside for a common good.

The other banks are continuing to work on a joint package.

One of the issues was reportedly a competition clause which ASB did not want to sign. But ASB acting chief exective Ian Park rejected the criticism and said the bank acted swiftly for the sake of Cantabrians.

The banks had been discussing an industry response since soon after the February 22 quake but Park said there were stumbling blocks, including a clause in the joint agreement which, ASB and another bank thought, could have breached competition laws.

Park said ASB would still take part in an industry-wide programme on top of what it had already offered. The amount had not been decided but a figure of a total $200m shared between the banks had been discussed.

Park said he was "proud to work for an organisation that cares sufficiently for communities in which we operate".