Pyne Gould Corp's security trustee has agreed to lend extra millions to Timaru-based South Canterbury Finance.

Pyne Gould major shareholder George Kerr is thought to have had a strong hand in the deal to merge Marac with CBS and the Sthn Cross Building Society.

A proposal to launch a new listed New Zealand bank has been welcomed by the market and the stock exchange operator.

The banking operations of Pyne Gould, Southern Cross Building Society and the Canterbury Building Society are merging.

Chairman of freshly recapitalised Pyne Gould Corporation Sam Maling is to step down shortly, as will three other directors.

Pyne Gould Corp's underwriters have picked up 11.3 per cent of a $237 million rights issue.