Heartland New Zealand has entered a formal application with the Reserve Bank to become a registered bank.

The Heartland building society was formed through the merger of Marac Finance and two building societies in late 2010 with the aim to become New Zealand's only listed bank, a status requiring the approval of the Reserve Bank.

The bank told the NZX today it had started the formal application process.

Heartland has given the Reserve Bank independent reports and a written request for consideration and expects the central bank to seek further information to gauge the building society's fitness.

Heartland told its investors gaining approval was not certain.

''The fact that engagement with the Reserve Bank continues and the formal determination process is underway does not indicate that Heartland satisfies any of the criteria for registered bank status, or that the outcome of the process will be positive.

Heartland said it expected a decision by November.

There can be no appeal of the central bank's decision, although another application could be made in the future should the first fail, the company said.

Heartland's financial results for the year to June 30 will be released before the market opens on August 28.

- © Fairfax NZ News

Comments