Comments on: Should NZ have a deposit insurance scheme? http://indiafd.com/2010/02/should-nz-have-a-deposit-insurance-scheme/ Fixed Deposit Schemes Fri, 25 Jun 2010 08:26:08 +0000 http://wordpress.org/?v=abc hourly 1 By: eyreland http://indiafd.com/2010/02/should-nz-have-a-deposit-insurance-scheme/comment-page-1/#comment-59 eyreland Sun, 07 Feb 2010 08:02:57 +0000 http://indiafd.com/2010/02/should-nz-have-a-deposit-insurance-scheme/#comment-59 I agree 100%, and I only have maybe 1000 NZD held in NZ by a bank. A deposit guarantee of 50k for personal accounts (the average Kiwibank deposit is ~65k, based on 2005 numbers) is reasonable. For business accounts, 100k is reasonable. Latent moral hazards -- Yes, there will be some additional bureaucracy created by this -- Yes, there will need to be some transparent auditing involved Gov 2 Bank -- Yes, Foreign Investment will go up with the scheme; and that will have some repercussions MP I agree 100%, and I only have maybe 1000 NZD held in NZ by a bank.

A deposit guarantee of 50k for personal accounts (the average Kiwibank deposit is ~65k, based on 2005 numbers) is reasonable.

For business accounts, 100k is reasonable.

Latent moral hazards
– Yes, there will be some additional bureaucracy created by this
– Yes, there will need to be some transparent auditing involved Gov 2 Bank
– Yes, Foreign Investment will go up with the scheme; and that will have some repercussions

MP

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