RBNZ Demands Report on TSB's Financial Health Amid Acquisition Proposal

The Reserve Bank of New Zealand (RBNZ) has requested an independent report on TSB's capital and liquidity calculations.

This comes as Heartland Group shareholders prepare to vote next week on a proposal to acquire TSB from its owner, Toi Foundation.

The RBNZ has the power under the Banking Act to require a bank to provide an independent report in order to get insight and assurances.

TSB advised of issues with the computation and reporting of its capital and liquidity ratios, prompting the RBNZ's request for a Section 95 notice, which is a relatively rare occurrence.