New Zealand: Retail Deposit Insurance Scheme
Description
The Government introduced Retail Deposit Insurance Scheme which guarantees all retail deposits of up to 522,700 US dollars with approved financial institutions for two years. 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.
The government introduced the Crown retail deposit guarantee scheme on 12 October 2008 in order to support maintenance of public confidence in the New Zealand financial system and in New Zealand financial institutions at a time of international financial market turbulence.
The government has signed agreements with a number of institutions such as banks, finance companies, building societies and credit unions. These agreements are called a Crown Deed of Guarantee. Under the terms of those deeds, the Crown guarantees the institution’s payment obligations to that institution’s eligible retail deposit holders. This means that if an institution that has signed a deed defaults on its obligations, then the crown will pay the eligible depositors and take over their rights as creditors of the defaulting institution.
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | |
| Is there any evidence that alternatives to the proposed measure were considered? | |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | |
| Was such evidence identified? | |
| Is such evidence publicly available? | |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | |
| Did the government state its intention to review the measure within one year of implementation? |
Date Discovered:
Implemented: Yes
Date of inception: 12 Oct 2008
GTA Evaluation: Red
Source:
the official website of the Treasury. Available from < http://www.treasury.govt.nz/economy/guarantee/retail >
Government Response:
- 389 reads
