WELLINGTON, New Zealand — New Zealand remains one of the few developed countries where people with bank savings have no recourse if their bank fails, but the government says that’s about to change.
Finance Minister Grant Robertson on Monday announced plans for a program aimed at individual account holders that would guarantee bank deposits of up to 50,000 New Zealand dollars ($33,000).
Robertson said the scheme would fully protect about 90% of savers, and would cover about 40% of the total NZ$352 billion kept in bank deposits.
The announcement came as part of a wider banking system review aimed at making banks and their executives more accountable.
New Zealand was forced to introduce a temporary deposit protection program after the 2008 global financial crisis but never used it because no major banks failed.
The Associated Press
