BRIAN GAYNOR: Is your bank safe and, if not, what is your position?

By Brian Gaynor | Thu, 26 Mar 2020


Covid-19 has generated unprecedented financial concerns and depositors may be worried that their bank could go bust.The quick response to this concern is that a major New Zealand bank collapse is highly unlikely, but it is worth knowing what will happen if this occurs.A 2014 Financial Markets Authority survey revealed that 75 percent of respondents believed that New Zealand bank deposits were guaranteed.Deposit insuranceThese respondents were essentially wrong. According to the International Association of Deposit Insurers (IADI) 146 countries...