New law will ensure more security for bank deposits from next year

New Zealanders will finally get protection for bank deposits after Parliament passed the Deposit Takers Bill.

It meant if a deposit taker, such as a bank, building society or finance company failed, eligible depositors would have up to $100,000 of their savings protected.

It was the final piece of legislation in the government’s review of the Reserve Bank of New Zealand Act.

The compensation scheme would be funded by a yet to be announced industry levy set by the Finance Minister, with the scheme set to come in by late next year.