WELLINGTON, July 1 (Xinhua) -- New Zealand introduced a new deposit insurance scheme on Tuesday, offering enhanced protection for customers' savings in the event of a bank or licensed deposit taker failure.
Effective today, the Depositor Compensation Scheme (DCS) insures deposits of up to 100,000 NZ dollars (61,136 U.S. dollars) per person, per institution, covering banks, building societies, credit unions, and finance companies supervised by the Reserve Bank of New Zealand (RBNZ).
The scheme is designed to give New Zealanders greater peace of mind, guaranteeing that individuals, businesses, and trusts will be able to recover their deposits in the unlikely event of a bank or licensed deposit taker collapse, said Finance Minister Nicola Willis.
The DCS automatically covers standard banking products like transaction, savings, notice, and term deposit accounts. Depositors do not need to take any action, but should check with their financial institution to confirm which accounts are protected, according to an RBNZ statement.
Funded by industry levies and managed by the RBNZ, the DCS brings New Zealand in line with international standards, enhancing financial stability and promoting fair competition among deposit takers, it said. ■
