In December 2008 and September 2009 the Treasury released documents relating to the development of government policy on the retail deposit guarantee scheme, that scheme’s extension, and the wholesale funding guarantee facility.
On 12 October 2008, the Government announced that it would offer a Crown retail deposit guarantee scheme to ensure ongoing retail depositor confidence in New Zealand’s financial system, given turbulence in the international financial system. This announcement was prompted by the introduction of a guarantee scheme in Australia.
Following the announcement Treasury and Reserve Bank officials continued to develop the scheme, with details being progressively released on the Treasury website. The final detail of the original scheme is most fully set out in the Cabinet paper of 20 October 2008: Crown Deposit Guarantee Scheme: Implementing and monitoring the scheme.
On 1 November 2008 the Government announced the provision of a Crown wholesale funding guarantee in order to facilitate access by New Zealand financial institutions to international financial markets, in a global environment where international investors remain highly risk averse and where many other governments have offered guarantees on their banks’ wholesale debt. The final detail of this facility is most fully set out in the Cabinet paper of 4 November 2008: Crown wholesale guarantee facility: implementing and monitoring the scheme.
The government announced on 25 August 2009 that it will extend the retail deposit guarantee scheme to 31 December 2011 and change some of its terms and conditions. The current scheme ends on 12 October 2010. On 13 September 2009 the Crown Retail Deposit Guarantee Scheme Act came into force, providing legislative authority for the extension of the scheme.
See the Economy > Guarantees section of the Treasury website for operational details of the retail deposit guarantee scheme (including a list of approved institutions), the extended retail deposit gurantee scheme and the wholesale funding guarantee facility.
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