The Theories of the International Expansion of Bank and the Performance of Foreign –Owned Bank in New Zealand
The Impact of New Zealand banks
New Zealand’s banking system has its roots in continental Europe. The first trading bank (the union bank of Australia) was established in 1840. After 1860, a numbers of other Australian and British banks followed, three were British overseas banks, two were Australian and one was local. Therefore the New Zealand banking sector has a long history of foreign ownership
The government began to ease the restrictions of financial institutions from 1975, and the deregulation of banking was introduced in 1986, the main effect of the deregulation programme was to remove the legislation that restricts competition within finance sector. Since 1987 there have been only two categories of financial institution: register banks and non-bank financial institutions. All banks have to be registered with Reserve Bank of New Zealand. The Reserve Bank has implemented an open door policy in 1987, therefore, the number of banks has increased significantly as new foreign banks have entered and domestic savings institutions have converted to bank status.
Today, there are 15 foreign-owned banks were register with Reserve Bank of New Zealand four major Australian owned banks— ASB Bank, Australia New Zealand Bank (ANZ), BNZ, Westpac Trust, control about 85 percent market share at 30 Sep 2000(KPMG 2004). The one domestically owned bank—TSB Bank—is a small retail bank
ASB
ASB bank is one of the New Zealand’s commercial Bank and with reported total assets of NZ$59.35 billion (as of 30 June 2008), ASB Bank is one of the five large retail banks operating in the New Zealand market. It began in 1847 as the Auckland Savings Bank. During the 1980s the association of savings banks amalgamated the local savings banks throughout New Zealand with ASB at their head, and adopted the name, ASB Trust Bank. In 1989, the ASB Bank Community Trust, the owner of the bank, sold 75 per cent of the shares to Commonwealth Bank. In 2000, Commonwealth Bank bought the remaining 25
New Zealand’s banking system has its roots in continental Europe. The first trading bank (the union bank of Australia) was established in 1840. After 1860, a numbers of other Australian and British banks followed, three were British overseas banks, two were Australian and one was local. Therefore the New Zealand banking sector has a long history of foreign ownership
The government began to ease the restrictions of financial institutions from 1975, and the deregulation of banking was introduced in 1986, the main effect of the deregulation programme was to remove the legislation that restricts competition within finance sector. Since 1987 there have been only two categories of financial institution: register banks and non-bank financial institutions. All banks have to be registered with Reserve Bank of New Zealand. The Reserve Bank has implemented an open door policy in 1987, therefore, the number of banks has increased significantly as new foreign banks have entered and domestic savings institutions have converted to bank status.
Today, there are 15 foreign-owned banks were register with Reserve Bank of New Zealand four major Australian owned banks— ASB Bank, Australia New Zealand Bank (ANZ), BNZ, Westpac Trust, control about 85 percent market share at 30 Sep 2000(KPMG 2004). The one domestically owned bank—TSB Bank—is a small retail bank
ASB
ASB bank is one of the New Zealand’s commercial Bank and with reported total assets of NZ$59.35 billion (as of 30 June 2008), ASB Bank is one of the five large retail banks operating in the New Zealand market. It began in 1847 as the Auckland Savings Bank. During the 1980s the association of savings banks amalgamated the local savings banks throughout New Zealand with ASB at their head, and adopted the name, ASB Trust Bank. In 1989, the ASB Bank Community Trust, the owner of the bank, sold 75 per cent of the shares to Commonwealth Bank. In 2000, Commonwealth Bank bought the remaining 25
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