The Government has reaffirmed its commitment to Kiwibank. It has agreed to provide an uncalled capital facility to NZ Post so Kiwibank can continue to grow.
The uncalled capital is a vital plank in maintaining an AA- credit rating. The rating is needed if Kiwibank is to compete with the four main Australian banks, and expand into new sectors such as business banking. The bank has attracted more than 700,000 customers in eight years.
NZ Post will be able to call on the capital only in certain circumstances, such as Kiwibank experiencing a substantial shock event beyond its own resources and beyond the resources of its parent.
We're confident this will give NZ Post and Kiwibank the financial certainty they need to pursue their growth plans.
More information: http://www.beehive.govt.nz/release/government+support+nz+post+plans
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