INDEPENDENT NEWS

Key welcomes wholesale guarantee security

Published: Sun 2 Nov 2008 01:03 PM
John Key MP
National Party Leader
1 November 2008
Key welcomes wholesale guarantee security
National Party Leader John Key has welcomed moves to shore up the security of the Kiwi economy with the wholesale bank guarantee announced today.
“National obviously welcomes moves that will offer Kiwi families and the economy more security in uncertain times. The wholesale guarantee was a necessary extension to the banking guarantee programme given the moves taken by others.”
On October 19 Mr Key said: ‘There is a risk that local financial institutions will decide to shift some wholesale deposits out of New Zealand banks and place them in Australian banks where their deposits will be guarantee … this means that the banks would, over time, have less money to lend to New Zealand businesses and New Zealand households, and that lending would become more expensive’.
“The improvements to the Kiwi protections announced today are important.”
Mr Key has also welcomed the assurances offered by trading banks that they will show compassion for Kiwis who find themselves in tough times.
“Just as the Government bank guarantee is designed to protect confidence and stability in the economy, I said just yesterday that I expected the banks to take similar steps to maintain confidence and stability.
“My expectation is that in light of the Government guarantee to banks, banks themselves will be very careful about the manner in which they deal with customers who may, as a consequence of the global financial crisis, find it hard to meet their obligations.”
Mr Key says National has been kept informed of developments and has received regular briefings from Treasury and Reserve Bank officials.
Ends

Next in New Zealand politics

New Law Will Clear The Air For Tamariki In Vehicles
By: New Zealand Government
Workplace Vaccination Requirements Extended To Cover Police And NZ Defence Force
By: New Zealand Government
Judith Collins removed as National Party leader
By: RNZ
Aucklanders Are Less Concerned With Covid
By: Auckland University of Technology
National Launches First Step To World-class Tech Sector
By: New Zealand National Party
Disgraceful Government Secrecy On Vaccination Certificates As Legislation Rushed Through
By: NZ Council for Civil Liberties
View as: DESKTOP | MOBILE © Scoop Media