People's bank to start next year

5:30 PM

The People's Bank will open its doors for business early next year.

Within its first three months it will have the biggest banking network in the country, through New Zealand Post shops, and will open at weekends.

It promises low fee personal banking services, including mortgages.

The Government will provide a cash injection of just over 72 million dollars which will be the limit of the Crown's investment.

Finance Minister Michael Cullen says the new banking service will not put customers' deposits at risk and he says it makes sense.

Dr Cullen says it will protect and enhance the value of NZ Post and the bank will have to stand on its own merit.

He said the bank is a sound commercial proposition with minimal risks.

NZ Post has not decided on a name for the bank yet.

- IRN