Bank of New Zealand facts for kids
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| Subsidiary | |
| Founded | 2 July 1861 |
| Headquarters | Auckland, New Zealand |
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Key people
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Dan Huggins (CEO) |
| Products | Banking services, loans and saving services |
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Number of employees
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5,000 (2013) |
| Parent | National Australia Bank |
| Rating | AA− (S&P) |
Bank of New Zealand (often called BNZ) is one of the four largest banks in New Zealand. It has been helping people with their money since October 1861. Since 1992, it has been owned by the National Australia Bank (NAB). However, BNZ still has its own board of directors in New Zealand. The bank offers many different money services for everyday people, businesses, and large organizations.
The Bank of New Zealand in Australia (BNZA) used to be a separate part of BNZ. It is now owned by NAB.
Contents
The Story of BNZ: How It Started and Grew
The Bank of New Zealand started as a private company. It was officially created by a special law called the New Zealand Bank Act in 1861. This law allowed the bank to print its own banknotes. The very first BNZ office opened in Auckland in October 1861. Soon after, another branch opened in Dunedin in December 1861.
In 1862, more branches opened in Wellington, Christchurch, and even London. The bank also started handling the New Zealand Government's money. It helped the government borrow money from the United Kingdom. In the 1860s and 1870s, a lot of money was brought into New Zealand. This led to many jobs and fast development. Property prices became very high.
In the 1880s, prices for important products dropped a lot. A rabbit problem also reduced wool production. The government cut spending on public projects by 75 percent. Land prices fell by half, and it was hard to sell land. Many farmers and business owners faced financial trouble. Working people found it hard to buy goods or pay their debts. At that time, there was no large dairy or frozen meat industry. Investors started taking their money out of the country. The export of frozen meat began in the 1880s, followed by dairy products. In June 1894, a new law helped save the BNZ. In 1895, BNZ took over the Colonial Bank of New Zealand, which was having serious problems.
Key Moments in the 20th Century
- 1940: BNZ gave a £1 million interest-free loan to the government to help with the war. The number of women working at the bank grew from 74 to over 700 by 1945.
- 1943: A mobile bank branch opened in a caravan for American soldiers. Night banking started in Auckland and Wellington.
- 1944: A department for personal loans was created. The government announced it wanted to take over the bank.
- 1945: The government passed a law to buy the bank. It paid £7,933,000 to the bank's 8,500 shareholders.
- 1966: The bank bought its first computer, an IBM 360/30. It had a small 16k memory.
- 1967: Databank Systems Ltd was set up with the National Bank of New Zealand. Other banks joined in 1968.
- 1978: The Visa debit card was introduced.
- 1980: Visa credit cards were introduced.
- 1984: The BNZ Centre building was finished in Wellington.
- 1985: Eftpos (electronic payments) was tested in petrol stations.
- 1987: The bank offered 15% of its shares to the public.
- 1989: The government sold more of its shares, reducing its ownership to 51%.
- 1990: The government had to give the bank $380 million to stop it from collapsing. This was because of bad loans in Australia. If BNZ had failed, many New Zealand companies would have also failed.
- 1992: National Australia Bank (NAB) bought BNZ. BNZ became a part of the Australian bank but kept its own New Zealand board.
- 1992: The first call centre for BNZ opened in Auckland.
- 1998: The main office moved to Auckland.
- 1999: BNZ launched Internet Banking, allowing customers to bank online.
- 1999: BNZ Private Banking, a service for wealthy customers, was launched.
BNZ in the 21st Century
In 2000, BNZ had 192 branches and 5562 staff members.
On October 1, 2008, the bank changed its name to "BNZ." It also got a new logo and new colours.
As of 2013, the bank employed over 5,000 people in New Zealand.
In 2020, BNZ announced it would close 38 branches over seven months. This was due to the economic effects of the COVID-19 pandemic in New Zealand.
As of June 2022, BNZ was the second largest bank in New Zealand. It held 19.1% of the banking market.
What BNZ Does: Banking Services
Banking for Everyday People
For regular customers, Bank of New Zealand offers many services. These include savings accounts, ways to invest money, home loans, credit cards, and personal loans. They also offer insurance and help for people moving to New Zealand. Customers can do their banking by phone, online, or by visiting one of the 180 branches across New Zealand.
Banking for Businesses
BNZ's business banking is called BNZ Partners. It offers a full range of services for small, medium, and large businesses.
These services include bank accounts for daily use, investments, loans, and ways to handle payments. They also offer insurance and help for businesses that deal with other countries, like exports, imports, and foreign money exchange.
BNZ's business banking team has special knowledge about different types of industries. These include farming, medical services, property, non-profit groups, and Māori tribal organizations (iwi).
Banking for Large Organizations
BNZ's institutional banking helps very large companies, financial groups, and government organizations. This includes many different areas like farming, manufacturing, energy, and telecommunications. It also helps with property, local government, health, and education.
In December 2010, BNZ helped the new Auckland Council get a large loan of $600 million. In June 2010, BNZ also won the contract to provide all banking services for the Auckland Council.
How BNZ Operates
Most of BNZ's main management and administration offices are in Wellington and Auckland. The bank also has 180 retail stores and business centres across the country. These business centres are called Partner Centres.
BNZ and the Environment: Being Sustainable
Bank of New Zealand was the first bank in New Zealand to become carbon neutral. This means they balance the amount of carbon dioxide they release into the air with the amount they remove. They achieved this in September 2010 after three years of work. They reduced their emissions by using less energy and making their vehicles more efficient. They also encouraged employees to be more eco-friendly at work and at home. Any emissions they couldn't avoid were offset by buying carbon credits.
A big part of this effort was building three new, energy-efficient buildings. These buildings housed most of the company's management and administration staff. Two of these buildings are in Auckland's city centre. The third was the Harbour Quays complex in Wellington. It was built in 2009 but was taken down in 2019 after being damaged in the 2016 Kaikōura earthquake. One of their buildings, the Deloitte Centre, was called "the greenest building in the land." This was because it was the first building in New Zealand to win three Five Green Stars awards.
Images for kids
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The official coat of arms for the Bank of New Zealand, adopted in 1954.
See also
In Spanish: Bank of New Zealand para niños
