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New Zealand one step closer to Depositor Compensation Scheme

The Reserve Bank of New Zealand - Te Pūtea Matua is one step closer to launching the Depositor Compensation Scheme which will operate under the new Deposit Takers Act.

Following consultation and engagement with the deposit taking sector over the past 9 months, the Reserve Bank is pleased to share the next iteration of policy proposals for the Depositor Compensation Scheme (DCS) under the Deposit Takers Act (DTA).

Director of Prudential Policy, Kate Le Quesne, says the regulations outline some of the key components needed to operate the DCS, including the proposed levy calculation method, eligible products and the scope of coverage. 

“Feedback from stakeholders is a valuable and important part of the policy development process, and we welcome input on the rules needed to establish the DCS, scheduled to be live in mid-2025, ahead of the DTA legislation coming into effect in 2028”. 

“The DTA will give Te Pūtea Matua more powers to supervise banks, and from 2028, credit unions, building societies and finance companies. We recognise the diversity across the deposit taking sector and that each organisation is unique. The long-term outcome of implementing the DTA is to achieve a resilient, stable and inclusive financial environment that contributes to a sustainable and productive economy. Financial stability is an important contribution we can make to promoting the wellbeing and prosperity of New Zealanders,” says Ms Le Quesne.

A key outcome of the Act is to establish the Depositor Compensation Scheme which will give New Zealanders greater confidence that their deposits are protected.

The consultation seeks feedback on the proposed calculation methodology for the levy being paid by deposit takers, the scope of DCS coverage, and other operational details. It proposes which products are to be covered under the DCS, including specific alternative options.

Once operational in mid-2025, eligible deposits will be protected up to $100,000 per customer, per deposit taker. 

Consultation materials can be found at 

Consultation is open until 10 May. 

More information

Deposit Takers Act

Depositor Compensation Scheme explained

Implementation timeline

July 2023 Consultation on DCS Levy Framework

Media contact

Karen Wong
Strategic Communications and Stakeholder Lead  
Mobile: 0212555971
Email: [email protected]