By Gareth Vaughan
BNZ has become the first of New Zealand's big four Australian owned banks to secure independence from its parent in a funding sense, chief financial officer Adrienne Duarte says.
Duarte made this comment in a speech to the Trans-Tasman Business Circle entitled Taming 'the beast' - New Zealand's reliance on offshore funding. She also challenged BNZ's major rivals to secure their own funding independence from their Australian parents.
"We have also diversified our funding sources enough to repay all the senior unsecured funding lent to us by our parent, National Australia Bank (NAB)," Duarte said.
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1 Comments
"We have also diversified our funding sources enough to repay all the senior unsecured funding lent to us by our parent, National Australia Bank (NAB)," Duarte said.
I bet NAB demanded they do so in light of the draconian impact upon unsecured bank creditors post the institution of OBR - the parent company made sure they were not going to help re-capitalise the NZ branch in the event of insolvency. That is a task best left to the exposed depositors and local NZ unsecured note holders.
But I guess BNZ still funds mortgage assets with foreign wholesale loans, exempt from OBR pre-positioning, to extend the asset to liabiltiy ratio beyond the prudent 100% of local deposits - an update confirming this ratio is below the previously noted 140% level would offer some comfort to depositors.
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