Proposed Deposit Takers Act

The proposed Deposit Takers Act will help protect New Zealanders’ money that is held by financial institutions. It will strengthen the regulatory framework for all institutions that take deposits and introduce a new deposit insurance scheme that we will oversee.

Where we are right now

Drafting of the legislation is now underway, with public consultation on an exposure draft of the Deposit Takers Bill expected later this year. The Bill is expected to be introduced into the House in late 2021, and receive Royal Assent in 2023.

After the new Act passes, a significant work programme over several years will be required to implement the new prudential framework for deposit takers. The deposit insurance provisions of the Act are targeted for introduction in 2023, ahead of the rest of the Act coming into effect.

Further public consultation is expected on the funding framework before the scheme is implemented.

An indicative timeline is shown below.

What the new Act will do

The new Deposit Takers Act will create a single regulatory regime for all bank and non-bank deposit takers (such as building societies and finance companies). It will also introduce a new deposit insurance scheme that will protect up to $100,000 per depositor, per institution in the event of a failure.

The new legislation will require us to:

  • establish a depositor protection scheme that will apply to all institutions that take deposits
  • introduce a single regulatory regime for non-bank deposit takers (NBDTs) and banks, with standards as the main tool for us to set requirements
  • strengthen director accountability with penalties for non-compliance
  • broaden our supervision and enforcement tools (including a new power to conduct on-site inspections)
  • strengthen and clarify the crisis resolution framework.

Media release: New Deposit Takers Act a step closer

New Zealand is currently only 1 of 2 OECD countries where depositors are not protected from loss, so this new scheme will significantly strengthen our financial system safety net.

Joint Review team

We have formed a joint Review team with the Treasury to finalise policy that will underpin the new legislation.

After the Bill is enacted, there is likely to be a transition period to allow both the Reserve Bank and regulated entities time to adapt to the new regime.

More information about the Reserve Bank Act Review is available on the Treasury’s website

RBNZ Deposit Takers Act timeline

Depositor Takers Act Timeline

2018 RBNZ Act Review begins

2019 Phase 2 of RBNZ Act Review


Phase 2 provisions split into proposed Deposit Takers Act

2020 Public Consultation


Consultation begins


Consultation ends

2021 Policy Development


Policy finalised, Cabinet makes in principle decisions


Bill drafting begins


Exposure draft for the Bill released for consultation

2022 Deposit Takers Bill


Bill introduced, First reading


Parliamentary process (Select committee/Second reading/Committee of whole House/Third reading)


Royal Assent – Bill becomes Deposit Takers Act (depending on progress through Parliament)

2023 Deposit Takers Act


Start of transition period