Table of Contents

1.0 Introduction

2.0 New Zealand Approach to Regulating Financial Institutions

3.0 Rationale for Deposit Guarantee

4.0 Why New Zealand Need An Explicit Deposit Guarantee Scheme

• 4.1  Enhancing Financial Stability
• 4.2  Protecting Small and Unsophisticated Depositors
• 4.3  Market Expectation and Why an Explicit Deposit Guarantee

5.0 Designing the Explicit Deposit Guarantee Scheme

• 5.1 What Are the Alternatives?
• 5.2 Proposed Design for An Explicit Deposit Guarantee Scheme (“EDGS”)

        6.0 Recommendation and Conclusion

References 

Annex 1 – New Zealand’s Retail Deposit Guarantee Scheme 2008 (“DGS”)

Annex 2 -Summary of Non Bank Financial Institutions (“NBFI”) Regulatory Environment 

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