Regulatory Alerts2025-06-04
Reserve Bank of New Zealand DCS guidance: protected deposit hierarchy
The Reserve Bank of New Zealand issues this guidance to establish a five-tier hierarchy for prioritizing protected deposits when apportioning Depositor Compensation Scheme payouts under the Deposit Takers Act 2023. The framework ranks transactional accounts as highest priority, followed by savings accounts with transactional features, term deposits, accrued interest, and finally relevant arrangements, ensuring rapid access to essential funds. This structure enables the Reserve Bank to exercise its discretion effectively during a deposit taker failure while maintaining financial stability and public confidence.
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