Deposit Compensation Scheme Becomes Law

New Zealanders will have up to $100,000 of their deposits in any eligible institution guaranteed in the event that institution fails under legislation passed in Parliament today to strengthen and protect the financial system.

The Deposit Takers Bill passed its third reading today as the third and final piece of legislation in a comprehensive review of the Reserve Bank of New Zealand Act.

“The passing of this bill will allow for the introduction of depositor protection and close a long-standing gap in New Zealand’s financial safety net, bringing New Zealand in line with international best practices,” Grant Robertson said.