On 22 September 2022, the Deposit Takers Bill was introduced into Parliament. The Bill aims to guarantee New Zealander’s deposits (up to $100,000) held in any eligible institution (deposit takers such as banks, credit unions, building societies and finance companies) if the institution fails. This is the third piece of legislation from the review of the Reserve Bank Act, following the Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018 and the Reserve Bank Act of New Zealand Act 2021.
The scheme will be pre-funded by levies on deposit takers and support by a Crown backstop. The levy is expected to be risk-based with deposit takers paying different rates depending on an assessment of the risks they pose.
The Bill will make consequential amendments to several Acts including the Child Support Act 1991, the Customs and Excise Act 2018, the Gambling Act 2003, the Income Tax Act 2007, the KiwiSaver Act 2006, and the Tax Administration Act 1994.