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Regulatory Impact Statement: Extending the Retail Deposit Guarantee Scheme

Annex 1: Coverage of Institutions

The current DGS has covered the majority of the financial institutions in New Zealand, by asset size[6]. Namely:

  • 50% to 60% of the finance company sector. Most of those not included are either in moratorium or receivership;
  • More than 95% of the credit unions;
  • More than 95% the building societies; and
  • 85% to 90% of the banks.

The current DGS guarantees $128 billion of New Zealand deposits with approximately 93% in banks, and 7% in non-bank deposit taking institutions (NBDTs)[7] and Collective Investment Schemes (CISs) (see Table 2).

Table 2: Details of entities in the current DGS (as at March 2009)
Type of institution Entities in scheme
(number)
Guaranteed deposits
($billion)
Guaranteed depositors
(number)
Bank 12 [Withheld - commercially sensitive] [Withheld - commercially sensitive]
Finance company 27 [Withheld - commercially sensitive] [Withheld - commercially sensitive]
Credit union 20 [Withheld - commercially sensitive] [Withheld - commercially sensitive]
Building society and PSIS 8 [Withheld - commercially sensitive] [Withheld - commercially sensitive]
PIEs (stand alone) 1 [Withheld - commercially sensitive] [Withheld - commercially sensitive]
Total 68 $127.4 [Withheld - commercially sensitive]

Notes

  • [6]KPMG Financial Institutions Performance Survey
  • [7]The NBDT sector is comprised of finance companies, credit unions, building societies and the PSIS.
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