tatjna (tatjna) wrote,

Easier to post this than find the entry to comment on

Referring to banks in NZ carrying sufficient funds to pay out their customers, I emailed my bank and asked them. Here's the reply:

"Thank you for your email regarding financial stability in Westpac.

New Zealand does not have a deposit insurance regime. Instead, the Reserve Bank of New Zealand imposes detailed and specific disclosure requirements, which must be met by banks in their quarterly disclosure statements (GDSs). This enables investors to make informed decisions in the NZ banking market.

Until 1 November 2006, New Zealand depositors with Westpac have preferential rights in relation to the New Zealand assets of Westpac Banking Corporation (WBC) in the event of a winding up of WBC.

Since 1 November 2006, WBC's NZ business and consumer operations have been conducted by a locally incorporated bank, Westpac New Zealand Limited (WNZL), rather than a branch structure.

In the event of a winding up of WNZL, depositors in WNZL will rank equally with other unsecured creditors. Full information about WNZL is available in its current disclosure statements.

Wholesale and financial markets business continue to be offered by Westpac Banking Corporation NZ Division (trading as WIB).

This will remain a branch of WBC. In the event of a winding up of WBC, depositors in the NZ Branch will not have preferential rights to the New Zealand assets of WBC. Further information is set out in WBC NZ Division's current disclosure statement.

Information on Reserve Bank policy in New Zealand is available on their website www.rbnz.govt.nz ."

Anyone who wants to interpret that into English for me, please do. Seems to me that we can all sing for our money should banks in Unzud take a nosedive, yeah?
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