TSB faces independent review of capital reporting ahead of merger vote
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Deloitte to report to the Reserve Bank in November TSB Bank has been required to commission an independent report into how it calculates and reports its capital and liquidity ratios, the Reserve Bank of New Zealand (RBNZ) announced. The notice comes days before Heartland shareholders vote on a proposed takeover of the bank. The RBNZ issued the notice under Section 95 of the Banking (Prudential Supervision) Act 1989 after TSB itself identified and reported the issues. Section 95 lets the central bank demand an outside review, by a reviewer it approves, when it wants an independent check on how a bank operates. TSB has appointed Deloitte, and a final report is due to the RBNZ in November. A draft is expected by the end of October, according to TSB's statement on the review, which said the review will focus on ongoing compliance after the merger. The RBNZ said it could not comment further while the prudential matter is ongoing. Merger vote proceeds Heartland Group Holdings plans to buy TSB from the Toi Foundation for $620 million and merge the two banks as TSB Heartland Bank. Heartland told the NZX in a statement the review relates to TSB, and its shareholder meeting will go ahead as planned on 30 September. "We take regulatory matters very seriously," Heartland chief executive Andrew Dixson said. He said Heartland would factor the findings into its view of the deal...
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