Government to guarantee bank deposits!

[alanzs]

So, our bank deposits will finally be guaranteed. I don't agree with everything Labour has done, but I think this is definitely going to make a lot of people sleep better at night. I think this will go a long way in calming the fear many feel with the economic issues abroad and the fact that deposit aren't guaranteed in any banks here in NZ.

According the NZ Herald
"The Government is offering to guarantee all retail bank deposits, Finance Minister Michael Cullen said today.

Dr Cullen said he would use his powers under the Public Finance Act to introduce an opt-in retail deposit guarantee scheme.

"The scheme will cover all retail deposits of participating New Zealand-registered banks and retail deposits by locals in non-bank deposit-taking entities. This would include building societies, credit unions and deposit-taking finance companies," he said.

The new scheme is an opt-in scheme and would take the form of a bilateral contractual agreement between the Crown and the individual institutions which take up the guarantee.

The scheme will be free for institutions with total retail deposits under $5 billion.

A fee of 10 basis points per annum will be charged on total deposits above $5 billion.

This means that a bank with $20 billion in retail deposits would pay $15 million in fees per annum.

The move comes as countries around the world grapple to deal with the freeze on international credit that is chilling the world economy.

Dr Cullen said the offer would be for a two-year term in the first instance, to give time to see how well international financial markets stabilise in the months ahead.

"The deposit guarantee is designed to give assurance to New Zealand depositors. The New Zealand banking system remains sound. We want to ensure that ordinary New Zealanders feel that their deposits are safe in the current uncertain international financial market conditions," Dr Cullen said."

[Usarka]

This election will be all about buying the voter with their current concerns be it tax cuts, bank liquidations, tertiary study assistance, anti-"brain drain" grants and benefits, etc etc etc..... instead of what's best for the country in the long term.

Unfortunately most nz'ers either cant see past the end of their eyelashes (I'm not suggesting you are one alanzs, just having a rant) or are either to poor to be able to look into the future, or are employed by the current government which has swelled the ranks of government employees to phenonemal levels (do-dee-dee-doo-doo) phenomena over the last 9 years.

I have $50 on Labour.....

[Subike]

So the govmint is going to guarantee ""our"" money, with our money,:pinch: then charge for doing it,:crazy:
sounds about right, legal thieft, they been doin it since for ever :yawn:

[BAD DAD]

Government to guarantee bank deposits!

Sounds like a fine sentiment, except that the "government" won't be guaranteeing anything. It will be the worker and business owner through our already inflated taxes.

[davereid]

Helens' just offering to pump tax dollars in corporate-welfare for the big-4 overseas owned banks.

Those who save with New Zealand banks like ASB, TSB, etc are NOT covered.

[slimjim]

Fucking wish...ING...did but they didn't....

[trustme]

These are exceptional times & circumstances, the guarantee is what is happening elsewhere & they are simply following others in an effort to impart some stability to a very unstable situation.
Don't like it,but it may well be necessary.
There are far more important & fundamental issues to be addressed & no one is doing it.
Labour wont/cant because it would send a message that for 9 years they have taken us down the wrong path.
National is like a possum in the headlights , it knows where it has to go but does not have the guts to make the decisions that are required, so it just sits & waits for the impact.
The end of the free lunch approaches , no matter who wins the election another dose of Rogernomics type medicine is on it's way, better sooner rather than later.

[Forest]

I find it abhorrent that the government is guaranteeing bank deposits for foreign owned banks.

On the other hand, Australian banks are in very good shape at the moment so in practical terms there is little or no risk to taxpayer funds.

[kiwifruit]

I have $50 on Labour.....

Me too

http://centrebet.com/cust?action=GoSports&ev_sub_type_id=8617

[trustme]

Me too
http://centrebet.com/cust?action=GoSports&ev_sub_type_id=8617

A very depressing thought, if they win I would have expected to see a swarm of Kiwis off to Oz, but the way their dollar is getting smacked around, they may be in for a rougher ride than us

[kiwifruit]

A very depressing thought, if they win I would have expected to see a swarm of Kiwis off to Oz, but the way their dollar is getting smacked around, they may be in for a rougher ride than us

who gives a fuck, i stand to win $225 bucks

[nodrog]

who gives a fuck, i stand to win $225 bucks

more like lose $50 :mellow:

[kiwifruit]

more like lose $50 :mellow:

maybe! :eek:

[Hitcher]

Australia and most other developed nations had already done it, so big deal. New Zealand banks have high quality assets, so are unlikely to require such intervention measures. But it's still a significant regulatory step, and one that Labour should have discussed with other political parties first, even though none would have opposed it.

[trustme]

who gives a fuck, i stand to win $225 bucks
It's that whats in it for me thought process that Labour relies on to buy/bribe themselves back into government.

[Swoop]

A very depressing thought, if they win I would have expected to see a swarm of Kiwis off to Oz, but the way their dollar is getting smacked around, they may be in for a rougher ride than us
It is getting very close to equalling the NZ dollar, which will make it even easier to move across the ditch if the red menace returns to gubbinment.

[trustme]

It is getting very close to equalling the NZ dollar, which will make it even easier to move across the ditch if the red menace returns to gubbinment.
Will their job market hold up , their economy is based around minerals/commodities , that market is heading south , they are as vulnerable as we are . Weak currency = weak economy
If a favourable exchange rate is a determining factor lets all fuck off to Zimbabwe, we'll all be two bob millionaires overnight.

[Usarka]

more like lose $50 :mellow:

I'll gladly lose the fiddy. If i win then it'll help pay for the plane ticket :chase:

[Forest]

Will their job market hold up , their economy is based around minerals/commodities , that market is heading south , they are as vulnerable as we are . Weak currency = weak economy

Nonsense. The 20 year average for the AUD against the USD is 72 cents, so their currency is only slightly undervalued by historical standards.

Weak currency = more export earnings
Australia = export oriented economy

The real issue is whether China will dial down demand for steel and coal, not the short-term value of the AUD.

[davereid]

Certainly a weak dollar helps your exporters present their wares on the international market at a lower $US dollar price.

But it also means there is weak demand for your dollar - generally an indications that you have little to sell that the world wants.

Trouble is, in most cases you have to buy stuff overseas as well. So a low dollar hurts like hell.

The real issue with "The Great $150,000,000,000 bank guarantee" is that its simply not possible.

NZ has only about 1 million taxpayers.

It would cost each of them, $150,000 each.

I, like most NZers are better off letting them go broke !

[trustme]

Nonsense. The 20 year average for the AUD against the USD is 72 cents, so their currency is only slightly undervalued by historical standards.

Weak currency = more export earnings
Australia = export oriented economy

The real issue is whether China will dial down demand for steel and coal, not the short-term value of the AUD.

Precisely , my point is that you would not go to Oz based solely on the exchange rate being favourable,

Weak currency = more export earnings
So lets devalue our currency & we will all be living in clover. It doesn't work that way
I think Oz will bounce back, people need to sit tight & stop panicking

[reofix]

the banks are in business.. they make billions... and the govt has guaranteed no matter what they do wrong ... they will never go broke
i am in business... i make a living... and the govt promise me every month(via the ird) that if i make one little mistake they will bankrupt me ... god i love living in a free society!!!

[Max Preload]

I bet the same lefties that say government should not be bailing out 'big business' (like say the BNZ...) are the same ones that will think this bullshit is the best thing since sliced bread.