The Reserve Bank of New Zealand - Te Pūtea Matua is one step closer to launching the Depositor Compensation Scheme (DCS)
which will operate under the new Deposit Takers Act (DTA).
Following consultation and engagement with the deposit taking sector over the past nine months, the Reserve Bank is
pleased to share the next iteration of policy proposals for the DCS under the DTA.
Director of Prudential Policy, Kate Le Quesne, says the regulations outline some of the key components needed to operate
the DCS, including the proposed levy calculation method, eligible products and the scope of coverage.
“Feedback from stakeholders is a valuable and important part of the policy development process, and we welcome input on
the rules needed to establish the DCS, scheduled to be live in mid-2025, ahead of the DTA legislation coming into effect
in 2028”.
“The DTA will give Te Pūtea Matua more powers to supervise banks, and from 2028, credit unions, building societies and
finance companies. We recognise the diversity across the deposit taking sector and that each organisation is unique. The
long-term outcome of implementing the DTA is to achieve a resilient, stable and inclusive financial environment that
contributes to a sustainable and productive economy. Financial stability is an important contribution we can make to
promoting the wellbeing and prosperity of New Zealanders,” says Ms Le Quesne.
A key outcome of the Act is to establish the Depositor Compensation Scheme which will give New Zealanders greater
confidence that their deposits are protected.
The consultation seeks feedback on the proposed calculation methodology for the levy being paid by deposit takers, the
scope of DCS coverage, and other operational details. It proposes which products are to be covered under the DCS,
including specific alternative options.
Once operational in mid-2025, eligible deposits will be protected up to $100,000 per customer, per deposit taker.
Consultation materials can be found at https://consultations.rbnz.govt.nz
Consultation is open until 10 May.
More information