KEY POINTS:
Australian bank Westpac how has a fully-fledged arm of its business owned and operated here in New Zealand.
The Reserve Bank advised today that Westpac New Zealand Ltd is now a registered bank. The entity is a New Zealand incorporated subsidiary of Westpac Banking Corporation (Australia).
The establishment of Westpac New Zealand Ltd means that, in line with the Reserve Bank local incorporation policy, all systemically important banks operating in New Zealand are now locally incorporated.
Until now Westpac's New Zealand business has been conducted by a division of the Australian incorporated bank. Westpac made the undertaking in late 2004 to incorporate in New Zealand.
"Since then the Reserve Bank has worked closely with Westpac to assist the local incorporation process", said Reserve Bank governor ALan Bollard.
The governor went on to say that local incorporation provides, among other things, a well-understood legal framework for the conduct of business in New Zealand and a local board to act in the best interests of the New Zealand bank.
