In 2019 the Government agreed to impose a levy on banks to pay for it, depending on the risk they pose. The Government would then top-up the rest.
The Government originally proposed a $50,000 limit for deposit protection, but Robertson says after feedback from the banking sector it has been increased to $100,000 to protect more New Zealanders. When enacted, these measures mean individuals will have up to $100,000 of their deposits in any eligible institution guaranteed in the event of the failure of an institution, Robertson said on Thursday. The aim is to have deposit insurance up and running in 2023.
The deposit insurance will cover banks, credit unions, building societies, and finance companies that are eligible to be licensed deposit takers.
Reserve Bank Governor Adrian Orr
Photo: RNZ / Dom Thomas
It said the economy slowed over summer but had continued to improve, and still faced an uncertain and uneven outlook. Economic uncertainty remains elevated and divergences in economic growth both within and between countries are significant, the Monetary Policy Committee (MPC) said in a statement. Short-term data continues to be highly variable as a result of the economic impacts of Covid-19.
It said the central bank was still short of reaching its targets of sustainable employment and inflation around 2 percent. Meeting these requirements will necessitate considerable time and patience. The committee agreed that it was prepared to lower the OCR if required.
OCR on hold at 0.25 pc - Reserve Bank still prepared to cut if required
14 Apr, 2021 02:00 AM
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Reserve Bank Governor Adrian Orr. Photo / Mark Mitchell
The Reserve Bank has left the official cash rate on hold at 0.25 per cent and said it is still prepared to go lower if required.
In a Monetary Policy Review today Reserve Bank Governor Adrian Orr said the global economic outlook had continued to improve since February. However, economic uncertainty remains elevated and divergences in economic growth both within and between countries are significant, he said.
New Zealand s commodity export prices continued to benefit from robust global demand.
Investor crackdown: A breakdown of the Government s big plan to favour first-home buyers newshub.co.nz - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from newshub.co.nz Daily Mail and Mail on Sunday newspapers.
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The Greens want to make it harder for property investors to get a mortgage, and to make them pay a capital gains tax whenever they sell a house. Source: 1 NEWS
The party released a four-point plan that it says will help stop an accelerating housing crisis, which continues to lock ordinary New Zealanders out of the market.
It comes as Finance Minister Grant Robertson is expected to announce policies to address housing supply side issues next week.
Greens Finance spokesperson Julie Anne Genter said her party s plan was calling for bold, transformative measures, including removing tax incentives for investors by ditching the five-year cap for the bright line test.