Allied Bank was just another competitor at the time.
My understanding of the situation was Bankorp/Volkskas was failing and no-one was interested in bailing/buying them out. So the Reserve Bank loan write-offs were a sweetener to encourage a buy-out and reduce the impact of the failure. As it was, segments of the corporate structure weren't in the deal and were wound up as insolvents anyway.
Allied probably would never had gone for the deal if the Reserve Bank debt came with the buy-out.
It actually was quite a choppy time in banking. The mutual societies converted to companies, and some to banks (Allied being one of them), and the banks went into the bond business...
A lot of change and a few casualties as a result too. Practically the whole financial industry went through a revolution.
My understanding of the situation was Bankorp/Volkskas was failing and no-one was interested in bailing/buying them out. So the Reserve Bank loan write-offs were a sweetener to encourage a buy-out and reduce the impact of the failure. As it was, segments of the corporate structure weren't in the deal and were wound up as insolvents anyway.
Allied probably would never had gone for the deal if the Reserve Bank debt came with the buy-out.
It actually was quite a choppy time in banking. The mutual societies converted to companies, and some to banks (Allied being one of them), and the banks went into the bond business...
A lot of change and a few casualties as a result too. Practically the whole financial industry went through a revolution.
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