CBS Canterbury, which has a total asset base of NZ$549 million, announced that it has completed an application for the building society to be covered by the Government's new deposit guarantee scheme, applauding the responsibility shown by the New Zealand Government in introducing the scheme.

In his first day on the job, new CBS Chief Executive Bryan Inch said that CBS Canterbury regarded the announcement of the deposit guarantee scheme by the Reserve Bank and Treasury as "prudent."

Inch said that he welcomed the responsibility shown by the New Zealand Government in terms of the growing international problems.

"Equally we believe the move is supported by the strength and unique structure of the New Zealand banking sector," he said.

"CBS Canterbury's prudent policies meant the organisation was well placed to meet the conditions of the application based on the requirements of its Trust Deed," Inch said.

"Nevertheless, we believe that it is important that banking institutions react in a coordinated way to the Government's measure so as to maintain stability and depositor confidence," he said.

Inch has taken up the CEO role at CBS after holding a senior management role at Rabobank in Sydney.

"I would not have moved from one of the largest and safest banks in the world to CBS Canterbury without doing my homework first," he said.