Briefs: Mega Kiwi credit union on the cards, McDermott departs RBNZ

Banking Day staff Briefs
  • Five of New Zealand’s credit unions have signed a conditional Heads of Agreement to merge – potentially creating the country’s biggest credit union with assets of over NZ$600 million and 75,000 customers. NZCU South, NZCU Central, NZCU Steelsands, Aotearoa Credit Union and NCU Baywide will merge, subject to member approval. All use the Oracle Flexcube software offered by the credit union national body, Co-Op Money and the unanticipated extra cost and time to deliver this has stressed the sector, with Co-Op Money downgraded by Fitch Rating and Aotearoa struggling to meet its capital requirements.
  • Reserve Bank of New Zealand will start looking for a new chief economist in the new year, following the announcement that John McDermott is leaving the central bank to take up a role as executive director at economic research institute, Motu. McDermott joined RBNZ in 2007, and was an assistant governor from 2008 until the formation of a new senior leadership team by new governor Adrian Orr last month.