Regulatory Alerts2024-11-14
Government Agrees on Risk-Based Levy Structure for Depositor Compensation Scheme
The New Zealand Government has finalized policy decisions for the Depositor Compensation Scheme Regulations, establishing a risk-based levy structure for deposit takers. This approach utilizes prudential capital, liquidity, profitability, and asset quality indicators to calculate levies, with a flat-based method applying to credit unions and building societies until 2028. The regulations also define the scope of protected deposits and exempt overseas branches, with formal approval expected in early December.
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