Jeanette Fitzsimons tagged posts

Wholesale Deposit Guarantee Likely

October 20, 2008 International FinanceNew Zealand Finance  No comments

According to statements from Finance Minister Michael Cullen made during a television interview on the 19th of October, the newly proposed bank guarantee scheme could soon be extended to wholesale deposits.

As it stands at this moment in time, the proposed retail-banking guarantee scheme does not extend to funds attained from international wholesale markets. According to Michael Cullen the government has been looking at the possibility of making this a reality, although since the New Zealand banking system was not undergoing any sort of crisis at the moment, they have to time to properly create and implement appropriate measures.

Concerns arise with the proposed scheme whereby it would seem that it would give virtual monetary guarantees to offshore stakeholders, effectively transferring ...

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