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Deposit Takers Act 2023

Depositor compensation scheme - Preliminary provisions

190: Additional purpose of this Part

You could also call this:

"This part of the law also helps keep your money safe in banks and supports banks in trouble."

Illustration for Deposit Takers Act 2023

This part of the law has another purpose. It helps keep New Zealand's financial system stable by protecting people who have money in banks, as long as they are covered by the depositor compensation scheme. It also allows the Depositor Compensation Fund to be used to help a bank that is in trouble. You can find more general information about the law's purpose in section 3. This section does not change what section 3 says.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS500959.

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Part 6Depositor compensation scheme
Preliminary provisions

190Additional purpose of this Part

  1. The purpose of this Part is to contribute towards protecting and promoting the stability of New Zealand’s financial system by—

  2. protecting eligible depositors to the extent that they are covered by the depositor compensation scheme; and
    1. allowing the Depositor Compensation Fund to be used to support a resolution measure undertaken in relation to a licensed deposit taker.

      1. This section does not limit section 3.