I suppose someone has to pay the premiums, not sure how it works to be honest. If it is a national scheme then depositors across all banks will pay to help out those in crappy banks that fall over reducing premium costs. Still better than taxpayers bailing them out, insurance also takes the smaller depositor out of the picture in a crisis as insurance will have them covered and the govt may not feel the need to bail the banks out.

No one is talking about how the current economic system is trying to generate inflation to reduce over-indebtedness by stealing from depositors through inflation. It is an outrage but no one seems to be talking about it. I guess I am a dummy thinking targeted inflation, protecting borrowers at the expense of savers, negative interest rates etc etc is nonsensical. I will be broke before central banks do the right thing and let markets decide interest rates and stop propping up asset prices with easy money and low interest rates.

I too would be less inclined to agree with Adrian Orr if I owned Aussie bank shares. Not sure about Kiwisaver ownership in general. My Kiwisaver fund doesn't own any as I switched to as close to cash as possible some time ago (so hoping banks don't go under). That is why central bank intervention propping up asset prices is making me so mad. Self interest as always, also I think it is exacerbating inequality and not giving the next generation the same chances that we had to secure our financial future.
I don't understand the US repo market but basically banks were asking for higher interest rates to reflect risk so the federal reserve comes in to suppress them. Total bull****. Money is worthless in the current environment so I take my chances that we have a market crash prior to people losing confidence in Money. Looking at the NZ govts debt level if there is a crisis of confidence in money the $NZ should appreciate significantly although if commodity prices drop at the same time who knows.