Results 1 to 5 of 5

Thread: Run on NZ Banks?

  1. #1
    ExPat is offline Member
    Join Date
    Feb 2006
    Posts
    85

    Default Run on NZ Banks?

    I recall from my visits to NZ that banks there are not insured in the sense that American banks have FDIC insurance for deposits. This release from New Zealand's Central Bank is rather ominous.

    NEWS RELEASE
    Date 30 June 2008
    Time 2:00pm


    Reserve Bank issues Statement of Intent

    The Reserve Bank has released its Statement of Intent (SOI) for
    2008-2011. Reserve Bank Governor Alan Bollard said the SOI has been
    written in a period of considerable uncertainty in the outlook for the
    economy.

    "Over the last six months or so, economic activity has slowed down
    markedly, while inflationary pressures, especially in fuel and food
    prices, have continued to strengthen,"
    Dr Bollard said.

    Since August 2007, the financial system has withstood a severe test of
    global financial markets, triggered initially by losses in the US
    sub-prime mortgage market. The IMF has described unfolding events as
    the largest financial shock since the Great Depression.

    "The adjustment process might prove to be protracted. Further
    volatility in world equity markets, exchange rates, and debt markets is
    likely,"
    Dr Bollard said. "In this environment, a key strategic
    priority for the Bank is to strengthen its prudential liquidity policy
    for banks."


    Dr Bollard said the Bank is also implementing the new regulatory
    arrangements for non-bank deposit-takers and the insurance sector. A
    variation to the Bank's current five-year funding agreement has been
    approved by Government to ensure suitably qualified staff can be
    recruited to implement and administer the new arrangements.

    At the same time, the Bank will ensure its management and systems
    continue to provide good support for its monetary and financial
    stability policy roles. A new econometric model is being introduced
    into the monetary policy and forecasting process and an integrated
    computer application is being built for collecting financial sector
    statistics.

    The Bank's SOI includes new 'Key Performance Indicators' for the Bank,
    identifying the main non-financial measures and standards by which the
    performance of the Bank can be judged. "These indicators will evolve as
    we gain experience in how to use them," he said.

    "Overall, this SOI reflects a strategic approach to ensuring the Bank's
    ability to maintain stability in an uncertain environment," Dr Bollard
    said.

    You can view the SOI at the following link:
    http://www.rbnz.govt.nz/about/whatwedo/soi2008.pdf

    Media contact:
    Mike Hannah
    Head of Communications
    Ph 04 4713671, 021 497418, mike.hannah@rbnz.govt.nz

  2. #2
    Cliff's Avatar
    Cliff is offline Oh Masterful One
    Join Date
    Apr 2008
    Location
    Nelson, NZ
    Posts
    358
    Blog Entries
    1

    Default

    That's right there is no FDIC here.

    Cliff
    Cheers

    Cliff

    Nelson, New Zealand
    NZ Citizenship in 2000, been in NZ 15 years now
    Arrived NZ in 1997 from Las Vegas, Nevada, USA

    "New Zealand isn't just a physical place it is a state of mind."

  3. #3
    SailingFan is offline Junior Member
    Join Date
    Apr 2008
    Location
    Chicago
    Posts
    7

    Default

    Quote Originally Posted by Cliff View Post
    That's right there is no FDIC here.

    Cliff
    Here in the US, the FDIC doesn't really do what most think it does anyway.

    The FDIC is supposed to insure individual depositors against a loss due to a bank going under. Sure, it still does do that, but it just doesn't come down to that anymore.

    For the most part, the FDIC's current job is to take a bank that has hit the insolvency point and find a healthy bank nearby that will absorb the assets. It usually happens on a Friday. Unless you know an insider at the bank you will not hear about it until Monday morning when they issue a release stating that X bank is no more and all customer deposits are now located at Y bank. The customers never lose access to their money and no insurance comes into play.

  4. #4
    ExPat is offline Member
    Join Date
    Feb 2006
    Posts
    85

    Default

    So what happens when a NZ bank fails?

  5. #5
    Cliff's Avatar
    Cliff is offline Oh Masterful One
    Join Date
    Apr 2008
    Location
    Nelson, NZ
    Posts
    358
    Blog Entries
    1

    Default

    You lose your money.
    Cheers

    Cliff

    Nelson, New Zealand
    NZ Citizenship in 2000, been in NZ 15 years now
    Arrived NZ in 1997 from Las Vegas, Nevada, USA

    "New Zealand isn't just a physical place it is a state of mind."

Similar Threads

  1. Banks and banking
    By MotherBear in forum What's in the news?
    Replies: 3
    Last Post: 03-05-2007, 11:53 PM
  2. Are NZ Banks Insured?
    By ExPat in forum Making The Move
    Replies: 3
    Last Post: 08-03-2006, 08:23 AM
  3. Best banks
    By macfod in forum General NZ Chat
    Replies: 15
    Last Post: 11-01-2006, 08:30 PM
  4. BANKS
    By papafauney in forum General NZ Chat
    Replies: 6
    Last Post: 29-04-2005, 06:08 AM
  5. Moving Money between USA and NZ, and Banks
    By jamesthecarman in forum General NZ Chat
    Replies: 4
    Last Post: 23-02-2005, 02:41 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46