As part of a strategy to diversify its funding the super fund- backed Members Equity Bank (ME Bank) plans to release more equity to the market.
"We are looking at broadening the shareholder base early in the New Year by making more equity in the bank available," ME Bank acting chief executive Nick Vamvakas said.
Industry super funds have already begun to signal interest in taking a bigger stake in the bank.
"A few funds have asked when we are going to issue more shares and some large industry funds have said that they would like to be a part of it," Vamvakas said.
ME Bank will be targeting current stakeholder members with a view to moving them to shareholder status, and there are also some funds that would like to become a stakeholders for this first time.
Created in 1999 ME Bank is currently backed by 35 industry super funds.
This announcement comes as ME Bank looks at ways to diversify its funding away from the capital markets.
In March this year Standard & Poor's placed the bank on credit watch due to the banks difficulty in accessing wholesale funding.
"In hindsight it was a mistake, we wouldn't rely so heavily on the capital markets. We are looking to have a diversification of funding and better retail and wholesale balance," Vamvakas said.
As a result the bank also has plans to more aggressively target and grow its retail banking business.
This year the bank has opened 13 branches and began offering bank accounts.
"We want to continue to get close to the shareholders and stakeholders of the bank and provide meaningful products for them," Vamvakas said.
"It's not about competing with the major banks, but its about being a niche bank that is relevant for the funds."
