Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

New Zealanders’ bank savings need protecting

3 November 2016

New Zealanders’ bank savings need protecting


The Green Party is calling on the National Government to introduce sector-wide deposit insurance following Kiwibank’s withdrawal of its deposit guarantee.

Kiwibank announced to its customers yesterday that its deposit guarantee on savers’ money was ending on 28 February 2017. After February, no bank in New Zealand will offer protection of savers’ deposits.

“New Zealand is the only country left in the developed world that doesn’t offer savers’ deposit insurance to protect them against possible loss if their bank ever got into difficulty,” said Green Party Co-leader James Shaw.

“Savers in New Zealand face a possible ‘haircut’ to their savings if their money is needed to bail out their bank. This can’t happen anywhere else in the rest of the OECD.

“Australian and American savers enjoy deposit protection of their savings up to AUD$250,000. Canadian and European deposits are insured up to $100,000.

“We think $100,000 would be a fair level of protection for savers here too.

“Deposit insurance would also support the resilience of our financial system, stopping the likelihood of a bank run, which is a real riskaccording to the OECD.

“The absence of deposit insurance makes it politically difficult to avoid a taxpayer-funded bank rescue.

“Deposit insurance would cost savers around $5-10 a year to fund.

“Five to 10 dollars is a small price to pay to know that your savings are safe no matter what,” said Mr Shaw.


ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Bridges’ ‘Meth Crooks’ Leadership Failure

Back in June, Bridges publicly accepted that Housing NZ had got it wrong, and that the National government had acted upon bad advice.

Now, you’d think this admission would create a broad bi-partisan basis for compensation to those families who had been unfairly evicted, at considerable cost and emotional distress. Some people had lost their possessions in trying to meet the expense of the upheaval.

Not everyone felt so compassionate. More>>

 

Multimedia & Transcript: Acting PM's Press Conference

Winston Peters, Acting Prime Minister while Jacinda Ardern is in New York for the UN Leaders' Week, held a short press conference Monday after chairing this week's cabinet meeting. More>>

General Assembly: Ardern Rejects Trump Call For War On Drugs

New Zealand will not be signing the United States' document calling for global action on the war on drugs, Prime Minister Jacinda Ardern says. Ms Ardern is in New York for the United Nations General Assembly this week, along with about 140 other world leaders. More>>

ALSO:

Pay Equity: Cabinet Funds Deal For Oranga Tamariki Social Workers

The Minister said that an agreement in principle has been reached between Oranga Tamariki and the PSA on a settlement worth $114.6m over five years. More>>

ALSO:

Hunting v Pest Control: Tahr Control Needed To Protect Alpine Habitats

A cull of introduced Himalayan tahr browsing conservation land in Kā Tiritiri o Te Moana/ the Southern Alps is needed to protect special alpine plants and their habitats, Conservation Minister, Eugenie Sage said. More>>

ALSO:

Protest At Sea: Judge Discharges Greenpeace Activists

The judge today discharged Norman and Howell without conviction, saying the cumulative consequences of a conviction would be out of proportion to what was “low level” offending off the Wairarapa coast in April 2017. More>>

ALSO:

No Reshuffle: Meka Whaitiri Removed As A Minister

Meka Whaitiri will be removed as a Minister with immediate effect... The decision was made after receiving a report into an incident that occurred on 27 August in Gisborne, involving Meka Whaitiri and one of her staff. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels