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Trust Bank of Tasmania
The Trust Bank of Tasmania (trading as Trust Bank) was a former state bank operating in Tasmania, Australia. It was created in 1991 from the merger of the Tasmania Bank and Hobart Savings Bank/Savings Bank of Tasmania, until being sold to Colonial Limited in 1999.
== Creation ==
During the mid-1980s, the Tasmanian Government attempted to create a single state bank by merging the two trustee banks, the Savings Bank of Tasmania and the Launceston Savings Bank. This failed, however; the Launceston Savings Bank eventually merged with the Perpetual Executors Building Society to form the Tasmania Bank in 1987. The Savings Bank of Tasmania continued to operate separately.
Poor lending strategies led the Tasmania Bank to crisis in 1989, and through financial injection by the state government and the inclusion of the Savings Bank of Tasmania, a merger was considered.〔 The state government deliberated, and put forth the ''Trust Bank (Arrangements) Act 1991'', which gained Royal Assent on 1 May 1991. The new company operated as a trustee bank structure like those of its predecessors.
The Trust Bank was an important institution within the state for its short period, through financial backing of local business and by community sponsorship. Trust Bank was official sponsor of the Tasmania cricket team in the late 90s, and funded its own art prize. In 1997 Trust Bank was registered through the Australian Securities Commission and became a limited company corporation with shareholders. Regardless, Trust Bank had difficulty in maintaining competitiveness in the Australian capital market, especially during a time of large market share between rival credit unions and banks.〔
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