Kiwibank to open first branches next week

11.50 am

The first Kiwibank branches are to open next week following confirmation this morning of its full registration by the Reserve Bank.

Kiwibank's chairman, Jim Bolger, said with registration out of the way, Kiwibank could now release details about its opening plans.

"On Thursday we will be announcing the full range of Kiwibank accounts, interest rates and fees. This will be followed with our first openings planned for next week in Palmerston North and Hawke's Bay."

The NZ Post-based bank, seeded with Government money to offer a low-fee banking alternative, plans to operate a pilot programme with a small number of branches for six weeks, before a full launch in April and May.

Of the 300 Kiwibank branches, about 130 are to be NZ Post-owned, and the rest will be run by franchises.

Mr Bolger said the bank had been through a rigorous two-month trial of its systems and procedures, a registration requirement.

Kiwibank's initial registration, on 29 November 2001, only allowed it to test its systems and procedures in anticipation of opening for business later on. Registration was required to make these tests transactions lawful.

"The Reserve Bank required this two-stage process because Kiwibank is being created from scratch," explained Reserve Bank Deputy Governor Rod Carr.

In recent years all other bank registrations have been by existing overseas banks or financial institutions that already had proven infrastructures.

"These tests have been completed, and other relevant conditions satisfied, and, as a result, in terms of its registration as a bank, Kiwibank Limited is now permitted to do business with the public," Dr Carr said.

There are now 17 banks registered in New Zealand.

- NZPA

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