Wholesale Funding Guarantee Facility tagged posts

More Bank Guarantee Scheme Details

November 2, 2008 New Zealand Finance  No comments

The Government has released concrete details about the new Bank Deposit Guarantee Scheme, specifically about its Wholesale deposit section.

Of the most interest in the new set of details is discussion on the pricing of the so called New Zealand Wholesale Funding Guarantee Facility, which can be read here. It seems that the Wholesale Guarantee Scheme has been priced above that of the Australian and American equivalent, although it is below that of Canada.

The fees that are charged on the use of this facility vary depending on the term of issue and the credit rating of the issuer. Issuers with a credit rating of AA- and above, A- to A+ or BBB- to BBB+, will yield a fee of 85, 145 and 195 basis points, respectively, if it is on a one year term...

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