The chair of Kiwibank's holding company is floating the idea of a Kiwibank-TSB merger.

It comes as a group of Taranaki locals is seeking an interim injunction to stop a proposed merger of TSB and Heartland banks.

The interim injunction on the TSB-Heartland merger is due to be heard on Thursday.

Forsyth Barr Associate Analyst Ben Crozier explained how this could work.

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