New Zealand’s Treasury to asses if Kiwibank can become the government’s bank

By Galia Ilan

The Treasury in New Zealand is to investigate if Kiwibank, the New Zealand Post subsidiary, if fit to become the government’s bank.

The nation’s Treasury will begin to assess the situation at the beginning of next year, according to New Zealand’s Finance Minister, Grant Robertson.

The Australian-headquartered bank, Westpac, has held the position of the government’s man bank since 1989.

However, it is anticipated that the position could now be filled by the Wellington-based financial institution.

Regardless, Westpac will remain as the exclusive provider of the Crown transactional banking services, Stuff reported.


“The work will investigate the merits of growing Kiwibank's capital base and capabilities so that it is positioned to become the Government's banker when the contract is next renewed,” remarked Bryan McDaniel, spokesperson for the Treasury.

“The financial and other resources required to sustain a good credit rating will be considered in next year's report to ministers.”

Kiwibank is among four other banks which have been awarded contracts to provide services to the Treasury, as well as Westpac – which received the largest share of the contract.

In order to become the bank for the New Zealand government, Kiwibank will require governmental investment.

“Any increased investment would need to be negotiated amongst the parties,” commented James Shaw, Leader of the Green Party and Associate Finance Minister.


Featured Articles

Ex Infosys President Ravi Kumar is the CEO Cognizant needs

Plagued by underperformance and multiple executive exits, Cognizant has replaced its CEO – what will ex Infosys President Ravi Kumar bring to the table?

How India is bucking the global dealmaking downturn

M&A deal volume and value reach record highs in India in 2022, despite slower dealmaking globally – as scope activity and acquisitions in renewables surge

Create C-suite space for the Chief Transformation Officer

Responsible for driving growth and change, the Chief Transformation Officer is the latest addition to the C-suite as business undergoes major change

12 AI predictions for the enterprise in 2023 – Dataiku


Welcome to the new breed of private members' clubs

Leadership & Strategy

Welcome to the New Age of the CISO

Leadership & Strategy