Kiwi Savings at Risk as National Fiddles

Kiwi savers are being let down by the National government which is shirking its responsibility to protect their bank deposits, says New Zealand First.

“Minister of Finance Bill English dodged questions in Parliament today, failing to give an adequate explanation as to why there is no guarantee on bank deposits,” says New Zealand First Leader Rt Hon Winston Peters.

“While Canada, the UK and Australia have a guarantee, the National government is setting New Zealand banking up for failure if there is a panic run on banks in the event of a disaster similar to the 2008 Global Financial Crisis.

“Mr English seems to be suggesting that those countries are wrong. Well, they probably know that when a financial crisis hits it is too late to rush into a bank guarantee scheme – the guarantee given recklessly to South Canterbury Finance proves that.

“The cost to New Zealanders of losing all their savings in a crisis and the threat to the banking system will be far greater than having a scheme.

“Mr English is relying on an Open Bank Resolution scheme that National has put in place – which gives the Reserve Bank power to put their hand into the savings account of Kiwis and take out what they will if a bank needs bailing out.

“There was a similar system in Cyprus – and it was devastating for individuals and families who lost their savings when banks were ‘rescued’.”

ENDS

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