The Government is bringing in a scheme to protect deposits of up to $100,000 in banks and financial institutions should they fail. Stacy Squires/Stuff Deposits of up to $100,000 will be protected under the new deposit guarantee scheme. Reserve Bank Governor Adrian Orr said reaching this stage was a significant milestone in strengthening the regulatory framework for all institutions that take deposits. “This will give the Minister of Finance a role in determining which types of lending the Reserve Bank is able to directly restrict,” he said. “The Reserve Bank will then have full discretion to decide which instrument is best suited to use and how the restrictions are applied.”Currently, the Reserve Bank has sole discretion over restricting bank lending.

Source: Stuff April 21, 2021 22:41 UTC