Covers specific debt securities including current accounts, savings accounts, term deposits, notice accounts, as well as credit balances in revolving credit contracts.
It excludes the debt securities quoted on licensed markets or intended for trading, and securities issued by overseas deposit takers mainly serving wholesale clients.
Levy framework applies to financial years from Jun. 30, 2026 onwards; levy calculation based on deposit taker's protected deposits value multiplied by risk-based levy rate.
Risk categories determined using capital adequacy, liquidity, profitability, asset quality.
Compensation process requires maintenance of detailed records for deposits held other than jointly; specifies payment procedures for deposits held under trust arrangements.
Sets conditions for information provision to NZ CB for compensation calculation.
Effectiveness
Regulations come into force Jul. 1, 2025; levy applies from FY ending Jun. 30, 2026.
In Feb. 2025, NZ CB proposed a policy about depositor compensation, see #243643.
