At present, the Government has a fall-back position should a bank founder, Open Bank Resolution (OBR). The Reserve Bank would shut the bank, reopening it straight away. The guarantee scheme would be funded by banks, with at least some of the cost likely to be passed on to bank consumers. New Zealand banks have $170billion in deposits, and the suggested limits, low by international standards, cover 90% of deposits and 40% of deposited funds. Every other country in the OECD has a deposit guarantee scheme apart from Israel, and it is introducing one.

Source: Otago Daily Times July 04, 2019 16:30 UTC