Government to guarantee bank deposits!

**alanzs** · 12th October 2008, 21:17

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** · 12th October 2008, 21:47

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** · 12th October 2008, 21:52

So the govmint is going to guarantee ""our"" money, with our money,

then charge for doing it,

sounds about right, legal thieft, they been doin it since for ever

**BAD DAD** · 12th October 2008, 21:57

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** · 13th October 2008, 06:45

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** · 13th October 2008, 07:31

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

**trustme** · 13th October 2008, 08:12

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** · 13th October 2008, 08:22

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** · 13th October 2008, 08:40

Originally Posted by Usarka

I have $50 on Labour.....

Me too

http://centrebet.com/cust?action=GoS...b_type_id=8617

**trustme** · 13th October 2008, 08:49

Originally Posted by kiwifruit

Me too
http://centrebet.com/cust?action=GoS...b_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** · 13th October 2008, 08:50

Originally Posted by trustme

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:Me** · 13th October 2008, 08:54

Originally Posted by kiwifruit

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

more like lose $50

**kiwifruit** · 13th October 2008, 08:55

Originally Posted by nodrog

more like lose $50

maybe!

**Hitcher** · 13th October 2008, 09:00

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.