Black Monday

[Snoopy]

So then "Based on each single bank account balance" would not apply? ie different accounts in the same bank wouldn't be covered for $50,000? Only one of the accounts?

"Under the scheme, deposits held by New Zealanders will be protected up to a total of $50,000 at a single deposit taker"

I read that as saying that for each deposit taker, your accounts would be aggregated to see whether you had funds in excess of the $50,000 guaranteed balance.

What about joint accounts?

If the joint account is held by two people, then half of the joint account balance would be assigned to each holder for account aggregation purposes.

SNOOPY

[ynot]

Woops I ment

[ynot]

the huge 6 - 7% rally in the us markets on friday in the last 30 mins was a computer driven short squeeze

Not too surprised by that. It sure looked like something besides market sentiment was driving it !

[kiora]

Thanks Snoopy for the clarification

[Crypto Crude]

Thanks snoopy...

.^sc

[ratkin]

Thanks Snoopy for the clarification

So, have we established he NZ branches of the Australian banks are not as secure as the Actual Australian banks?
If so does this leave Kiwi bank as being really the safest of the New Zealand banks?

And what of Rabodirect? It seems to be quite similar in that it is just a subsidiary of the main Rabobank which I guess means it is also not as safe as the main Rabobank?

[lawson]

I would think yes, because, like Australians, they pay the same bank deposit insurance in Australia, which takes the form of receiving lower interest rates than they otherwise would.



Some would argue that the Australian Government imposed (from 1st July 2017) 'banking levy' that now applies to the big four banks is a way of paying for some of the 'implied government guarantee' of a bank that is too big to fail.

The smaller banks in Australia think the Australian banking levy, a non trivial amount of $388m for Westpac in FY2009 - for example, is a great idea because they don't have to pay it!

SNOOPY

Thanks Snoopy and all who have contributed to this conversation very interesting. I wonder if the NZ scheme will still go ahead the legislation was due to be introduced mid 2020 I guess time will tell.

[Aaron]

Thanks Snoopy and all who have contributed to this conversation very interesting. I wonder if the NZ scheme will still go ahead the legislation was due to be introduced mid 2020 I guess time will tell.

I guess they could hurry it through to try and put confidence in the banks if things deteriorate further.

[Jerry]

Judge for yourself on the Reserve Bank website Dashboard which has all the NZ banks and their parameters.
https://bankdashboard.rbnz.govt.nz/capital-adequacy

[kiora]

So, have we established he NZ branches of the Australian banks are not as secure as the Actual Australian banks?
If so does this leave Kiwi bank as being really the safest of the New Zealand banks?

And what of Rabodirect? It seems to be quite similar in that it is just a subsidiary of the main Rabobank which I guess means it is also not as safe as the main Rabobank?

My view is the NZ govt would need to stump up with the $50,000/account in all the banks & nationalize them? just like SCF ? Otherwise there will be a stampede. Didn't Greece do something like that?
https://time.com/3949353/greece-bank-shutdown-eu/