Heartland Bank has confirmed it is still interested in buying the finance company, after an attempt by HNA Group was unsuccessful.

The Overseas Investment Office blocked the deal because it said it could not determine who the "relevant overseas person" was who intended to make the purchase.

That meant it could not be satisfied that person was of good character.

ANZ announced plans in January to sell its asset finance business UDC Finance for $660 million to the Chinese conglomerate, a Fortune Global 500 company.

Group executive and New Zealand chief executive David Hisco said then that sale was a strategic move by the bank so it could focus on its core banking activities.

He said, now the deal was terminated, the bank would continue to assess its strategic options regarding the future of UDC "although there is no immediate requirement to do anything".

“It will be business as usual for staff and customers. UDC continues to be a very profitable business with a strong capital position and a growing loan portfolio across a range of industries.

“Its focus remains on its core business of financing vehicles and equipment for people and companies across New Zealand," he said.

The debenture programme continued to be active, so financial advisers could place their clients’ money with UDC in the same manner.

Adviser Murray Weatherston said if the eventual buyer was known to New Zealand financial advisers and seen to be "good guys", the sale would not be a problem.

"If they are unknown and/or not believed to be good guys, then I think deposits will not be made or rolled over and the book size will slide. The earlier Chinese buyer was certainly not well known, so there was concern."

The amount of New Zealanders' money held in term deposits has increased from $145 billion in 2015 to $166b, of which $163b is with registered banks. That's despite persistently low interest rates.

UDC offers slightly higher term deposit rates than ANZ, at 3.5% for six months through to 4.2% for five years, with a minimum investment of $5000.