The finance companies received a warning yesterday from Finance Minister Bill English to sort themselves out, as he considered the future course of action with regard to the retail deposit guarantee scheme.
It is in October 2010 that the scheme, introduced by the previous Labour-led Government during last year's election campaign, will run out.
It should be noted that all retail deposits of participating New Zealand-registered banks, and retail deposits by locals in non-bank deposit-taking entities, are covered by the opt-in scheme, which also comprises building societies, credit unions and deposit-taking finance companies.
Related party liabilities are not included in the deposit guarantee scheme.
It was specified by English in an interview yesterday that he was assessing the prospects of the scheme after October next year, particularly in how it affected the non-bank deposit takers, such as finance companies.
He said: "They are keen to know what we are considering. They tell me people are putting money into them until the end of September 2010. That build-up could all disappear after that."
Good News USA
- Vodafone NZ’s new ‘Red Home’ packages will offer UFB and 150 TV channels
- Vodafone NZ’s full-year profit plunged by more than two-thirds to $56 million
- Vodafone adding 34 European countries to ‘AU$5 per day’ international roaming option
- Telstra launches its new ‘Every Day Connect Data Share Packages’
- Voyager signs “multimillion-dollar deal” with submarine cable group Hawaiki