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

Economic windfall should be funnelled straight back into communities: Green Party

Following an economic forecast that shows Aotearoa strongly rebounding from COVID-19, and Crown accounts looking much healthier than expected, the ...
Read More

Story

Green Party to abstain from tax changes that will worsen house crisis in absence of tax on assets

The Green Party will abstain from a bill that will make slight changes to income tax brackets.
Read More

Story

Green Party welcome Adrian Orr’s full and frank advice on tax

We welcome Adrian Orr signalling that he will provide advice to the Finance Minister on fiscal measures, include tax changes, to cool the housing m...
Read More

Story

Green Party respond to Government review of housing settings

It is a positive step that the Government is looking at options to take the heat out of the housing market, and has written to the Reserve Bank to ...
Read More

Story

Reserve Bank policies will inevitably heat housing market, Government must implement tax reform to cool it down

The Government must use levers to prevent further over-heating of the housing market, which will result from the Reserve Bank pumping another $28 b...
Read More

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