HOW IT’ S FUNDED
The scheme is funded by levies on the banks and other licensed deposit takers. It’ s managed by the Reserve Bank of New Zealand( RBNZ) and, if needed, the Government can step in to ensure compensation payments are made.
Kerry Beaumont from the RBNZ said the new scheme will help maintain confidence and financial stability. While it’ s rare for a bank to fail in New Zealand, it’ s reassuring to know that if it ever did happen, the system is in place to protect depositors and pay out quickly.
WHAT THIS MEANS FOR YOU
If you’ re a homeowner, the DCS is a reason to feel more confident about keeping savings in the bank. You don’ t need to fill out any forms; the protection is automatic and applies to each eligible account you hold.
For most Kiwis, this scheme won’ t change how you bank day-to-day – but it does give you an added layer of financial security. And in uncertain times, that kind of peace of mind is worth a lot.
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