Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Savings Institutions Support Deposit Guarantee

Draft media release

13 October, 2008

Savings Institutions Support Deposit Guarantee

The New Zealand Savings Institutions Association today welcomed the Government’s move to guarantee all savers’ deposits.

Ross Smith, chair of the association, and CEO of SBS Bank said: “We believe it is both prudent and sensible to reassure local investors who have become unsettled by the worsening international crisis, and to co-ordinate actions with Australia.

The New Zealand Savings Institution Association represents PSIS and the building societies, including: SBS Bank, Southern Cross Building Society, Nelson Building Society, Canterbury Building Society, and Heretaunga Building Society.

Mr Smith said “the associations’ members all intend to immediately opt into the New Zealand Deposit Guarantee Scheme announced by the Minister of Finance last night, and we welcome the opportunity to enter into a Deed of Guarantee with the Crown, and will be commencing this process immediately.”

The scheme will be free to all members of the association because the total retail deposits of each fall comfortably within the $5 billion level set.

Mr Smith said: “It is important that people understand that the New Zealand banking system remains sound. This move is designed to give further assurance to New Zealanders that their deposits are safe.

“The New Zealand Savings Institutions are even more protected from the international turmoil than most because we source our funding largely from domestic retail deposits and our lending is primarily first mortgage property lending over property in New Zealand. We are New Zealand owned and New Zealand funded.

“The association’s members have a history in New Zealand that cannot be matched by any other group in the financial services sector. We were the first to enable ordinary New Zealanders to own their own homes, have all been through depressions/share market crashes and our experience is great, with most of us having been collecting and lending money in New Zealand for well over 100 years,” Mr Smith said.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Back Again: Government Approves TPP11 Mandate

Trade Minister Todd McClay says New Zealand will be pushing for the minimal number of changes possible to the original TPP agreement, something that the remaining TPP11 countries have agreed on. More>>


By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>


Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>


Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>


Divesting: NZ Super Fund Shifts Passive Equities To Low-Carbon

The NZ$35 billion NZ Super Fund’s NZ$14 billion global passive equity portfolio, 40% of the overall Fund, is now low-carbon, the Guardians of New Zealand Superannuation announced today. More>>