ASB Bank, together with other CBA Group companies in New Zealand (Sovereign, CBA (NZ) Branch, BankDirect and Kiwi Income Properties), has responded to the residents and businesses across the Canterbury region by activating a range of emergency relief initiatives to help those impacted by Saturday's earthquake.

"We have been in contact with a number of the emergency relief providers in Christchurch who are working together to ensure that people are appropriately assisted with immediate food, clothing and shelter requirements," says ASB's Chief Executive, Charles Pink.

"One of the main concerns now is around the medium term impact on Canterbury's residents and businesses, and the assistance that will be available to get their lives back into order," adds Mr Pink.

"Today we are announcing two major relief initiatives, together with a comprehensive special customer assistance package.

"Firstly, we are working with the Red Cross to assist those in greatest need to recover from this disaster. We are pleased to announce that $500,000 will be donated to the Red Cross Canterbury Earthquake Appeal to assist them with this purpose.

"A special 100-day Term Deposit will also be launched by ASB this week, with an interest rate of 5 percent per annum and a $10 donation to the Red Cross for every customer who makes a deposit of $10,000 and over.

"We have also established a Business Restart Loan Fund to assist businesses in Canterbury affected by the earthquake with their immediate working capital requirements," Mr Pink says.

Up to $100,000 per customer will be available for existing ASB business and rural customers at the special variable rate of 1.25 percent per annum below ASB's housing variable rate. The current special variable rate is 5 percent per annum. New customers are also encouraged to talk to ASB about their lending requirements. The amount of this fund is open-ended. Details of these loans are attached, and include the ability to capitalise loan payments for up to one year. Term loans to help rebuild businesses will also be available.

"ASB has been talking to our personal, business and rural customers in the Canterbury region and we understand that for many, their greatest need right now is for us to assist them promptly with their financial concerns and enquiries," Mr Pink says. "We have people on the ground in Christchurch and in our Contact Centre who are there to answer this need."

A special customer assistance package is also available in the Canterbury region with the following features:

Provision of additional loans or changes to repayment arrangements for ASB home loan and business loan customers experiencing financial difficulties because of the earthquake, without incurring the usual bank establishment or adjustment fees; Capitalisation of interest on home or business loans where income or expenses have been affected by the earthquake; Waiving of the Early Repayment Adjustment for a fixed rate loan or business loan where a home or business has been destroyed or suffered major damage as a result of the earthquake; Review of credit card instalment repayments for those under financial stress because of the earthquake, including immediate consideration of requests for emergency credit limit increases; A 90 day overdraft of up to $10,000 for home loan customers and $2,000 for other personal customers at the variable housing rate less 1.25 percent (currently 5 percent per annum) to assist with short term needs; Expediting claims to our general insurance partner, IAG, for customers seeking help over and above the Earthquake Commission cover; and Waiving term deposit break fees over the next month for affected Christchurch customers wishing to access their funds ahead of maturity date.

"We are very aware of the distress and disruption to life that this earthquake has caused for New Zealanders and particularly for Cantabrians. We are here to help. Our people are available to discuss with customers their specific financial needs and provide options to assist the changes they need to recover from the effects of this devastating earthquake," Mr Pink says.

100 day Term Deposit: ASB's Personal Banking Terms and Conditions and the Investment Statement for the Term Deposits apply and are available free of charge from any branch of ASB. Interest rate subject to change.