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Deposit Takers Act

The Deposit Takers Act 2023 received Royal Assent on 6 July 2023. The Act is the final piece of legislation from a review of the Reserve Bank started in 2017.

Deposit Takers Act becomes law

The Deposit Takers Act 2023 (the Act) received Royal Assent on 6 July 2023. This follows the Finance and Expenditure Committee's consideration of the Bill.

The Deposit Takers Act 2023 replaces the following Acts:

Banking (Prudential Supervision) Act 1989

Non-bank Deposit Takers Act 2013

Related information

About the Act


The Deposit Takers Act modernises our regulatory framework to help ensure the safety and soundness of deposit takers. This is in line with our mandate to promote the prosperity and wellbeing of New Zealanders.

Colleagues chatting at a business meeting

Single regulatory regime

The Act provides a single, coherent regulatory regime to enable robust regulation of all deposit takers.

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Additional powers and an improved penalty framework

The Act provides for new inspection powers and the framework for managing and resolving a deposit taker in financial distress.

Depositor Compensation Scheme

The Act introduces a new Depositor Compensation Scheme (DCS) so depositors can have confidence that their deposits, in the event of a deposit taker failure, are eligible for compensation up to $100,000 per depositor, per institution.

Strengthening the RBNZ’s powers


The strengthening of our supervision and enforcement powers allows us to act to minimise the risks of high-impact failures. 

What the Act does

  • Provides additional powers, including new requirements for directors, more inspection powers and an improved penalty framework.
  • Creates a single regulatory regime for all entities who hold deposits — for example, banks and credit unions, to enable robust monitoring of all deposit takers to ensure consumers are protected.
  • Provides the framework for managing and resolving any deposit taker in financial distress. 

Introducing the new measures 

A substantial work programme is underway to implement the new prudential framework for deposit takers. We have begun developing and consulting on the regulatory requirements and will introduce a licensing process for deposit takers to operate under the regime. Parts of the current Banking (Prudential Supervision) Act 1989 relating to the regulation and supervision of registered banks and the Non-bank Deposit Takers Act 2013 will remain in force until the remaining parts of the DTA have been fully implemented.