Colonial Bank of New Zealand

A public company listed on the local stock exchanges it was owned and controlled by New Zealand entrepreneurs and not London or Australian bankers.

[2][3] Dunedin with its involvements with the South Island's gold mining was the major source of local capital for New Zealand's entrepreneurs.

The Bank of New Zealand had been founded in October 1861 by a similar local group in Auckland and, to pull capital north, it had opened a branch in Dunedin in December 1861.

Land fell to half its former value and that was impossible to realise, many runholders and businessmen were ruined and the working classes were unable to purchase goods or pay their debts.

William Larnach who had been one of the promoters[2] and owned a substantial shareholding bought more shares just prior to the collapse to show his confidence in its survival.