National should act to protect New Zealanders’ savings

National should follow today’s advice from the International Monetary Fund (IMF) and implement deposit insurance to protect New Zealanders’ savings, the Green Party said.

The IMF’s Financial Sector Assessment Programme recommended today that introducing deposit insurance is “the best option” to strengthen the Reserve Bank’s crisis resolution framework.

“New Zealand is the only developed country in the world where we can lose our savings if our bank makes a bad decision, and that’s because we don’t have deposit insurance,” Green Party Co-leader James Shaw said.

“Most people would be alarmed to discover that the Reserve Bank can legally dip into their savings to bail out banks.

“For about $5-10 a year, people with savings could have peace of mind that their money won’t be used to prop up a failing bank.

“Americans and Australians are protected by deposit insurance on their savings up to $250,000, while people in Canada and the EU are protected up to $100,000, which we think would be an appropriate level for New Zealand.

“Deposit insurance has the added benefit of minimising the risk of runs on the banks, because people know their savings are protected.

“The IMF agrees that a safety net for savers makes sense. Now it’s up to National and the Reserve Bank to follow their advice,” Mr Shaw said.

Latest Finance Announcements

Story

No surprise in National’s latest attempt to slash public services

National’s ‘alternative budget’ that includes huge cuts to the government’s operating allowance would risk gutting critical public services, and pu...
Read More

Policy

Economic Policy

Click here for our 2020 Election Progressive Tax Reform Policy A Green economy is about better quality of life for people and the planet. Economic...
See More

Policy

Trade and Foreign Investment Policy

Click here for our 2020 Election Priorities for International Trade We support fair trade that’s good for economic prosperity, people, and the pla...
See More

Story

Green Budget win backs public sector leadership on climate change

The Greens in Government have today won a significant investment to help move the public sector estate onto clean, renewable energy, Green Party Co...
Read More

Story

Budget 2019 Speech - James Shaw

E te Māngai o te Whare, tēnā koe. Ki a koutou ōku hoa Pāremata, huri noa i te Whare, ngā mihi o te tau hou ki a koutou katoa. 1.         The Wellbe...
Read More

Story

Green Party welcomes first Wellbeing Budget

“The Green Party is proud to welcome New Zealand’s first Wellbeing Budget to deliver change for New Zealanders,” Green Party Co-leader James Shaw s...
Read More