NZ depositors have no reason to fear bank losses

The Reserve Bank's diagram shows how it would deal with a bank failure. (Image: RBNZ)

Mon, 13 Mar 2023

Depositors in New Zealand banks shouldn’t be concerned about the safety of their money in the event of a bank collapse.The question has arisen in the wake of the collapse over the weekend of Silicon Valley Bank (SVB) in the United States.SVB specialised in catering to the banking needs of startup companies that needed somewhere to put the venture capital they raised.More than 90% of SVB’s deposits were uninsured – the US insures bank deposits up to US$250,000 (NZ$405,277) – but the US authorities have stepped up to ensur...

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