Reserve Bank governor Alan Bollard is unlikely to hike rates on Thursday but nobody should be expecting any dovish words either.

The two smallest home-lending banks both increased net profit strongly during the June quarter, but while TSB Bank maintained its mortgage market share, HSBC's fell yet again as its mortgage book shrank.

Australia-based Challenger Financial Services Group is to buy the 85% of mortgage aggregator Plan in one of three similar purchases.

Reserve Bank governor Alan Bollard left interest rates unchanged, saying that the outlook for economic activity and inflation has become more uncertain since the last rate review in July.

Global concerns about credit quality and the rising number of finance company collapses locally mean that Reserve Bank governor Alan Bollard is likely to hold rates steady on Thursday, despite signs that inflation still isn't under control.

The government-owned Kiwibank's profit growth slowed in the June quarter although its share of the mortgage market continued to grow strongly.

Westpac continued to increase its share of the mortgage market and its profitability rose 15% in the June quarter.

Bank of New Zealand grew its mortgage book strongly in the June quarter but still lost a smidgeon of its share of the mortgage market and its profit for the quarter was flat.

Nathans Finance has become the fifth New Zealand finance company to collapse in the last two years after questions about its dealings with its parent company, VTL Group, which has also collapsed, and about VTL's proposal to "sell" its US operations for US$67.5 million ($96.8 million).

Nathans Finance has become the fifth New Zealand finance company to collapse in the last two years after questions about its dealings with its parent company, VTL Group, which has also collapsed, and about VTL's proposal to "sell" its US operations for US$67.5 million ($96.8 million).

New Zealand Funds Management's $400 million Super Yield Fund has only been marginally affected by the US sub-prime mortgage crisis, says principal Richard James.

Finance companies shouldn't be waiting for regulation to improve the way they operate, says Strategic Finance chief executive Kerry Finnigan.

Even before Bridgecorp collapsed, Instant Finance had decided on a different approach to marketing, offering higher interest rates on its debentures to investors introduced to it by financial advisers and relying far less on advertising.

Warning of sustained inflationary pressures, Reserve Bank governor Alan Bollard has raised interest rates, in line with most economists' expectations but in defiance of political pressure amid concerns about the impact of the soaring New Zealand dollar on exporters.

The odds are that Reserve Bank governor Alan Bollard will raise interest rates this week, despite the highly politicised debate over the relentless rise of the New Zealand dollar.

Belgrave Finance is aiming to capture more conservative investors in the wake of the collapses of four finance companies with the launch of a new product shortly.