5 Oct 2015

Westpac retained as main government banker

4:23 pm on 5 October 2015

Westpac has been retained as the government's main banker.

The Australian-owned bank will continue to provide transactional banking services for the Crown, after the lucrative contract was put up for tender for the first time in 25 years.

Finance Minister Bill English said over that time there had been considerable evolution in the banking and financial services sector.

"The new contract will deliver cost savings for government agencies and all New Zealanders and will ensure that banking services are fit for purpose and provide value for money," he said.

Five other banks have been awarded smaller deals.

Mr English said the new contracts would deliver cost savings of more than $120 million.