South Canterbury Finance has shelved plans to become a bank.
Earlier this month, Pyne Gould Corporation announced it wanted to distance itself from the finance company sector, by seeking to become a registered bank.
South Canterbury says it's also considered a similar move.
However, chief executive Lachie Mcleod says the announcement of a Government deposit guarantee giving finance companies the same guarantees as banks on 12 October, has made the move less of an imperative.
He says the company's strength should also be enough to reassure customers.
The Southland Building Society became New Zealand's 18th bank earlier this month.
