19 Nov 2009

Treasury eases retail deposit scheme rules

5:19 am on 19 November 2009

The Treasury is making a number of changes to its retail deposit guarantee scheme.

It is making it more flexible by allowing members to also offer non-guaranteed deposits. Existing deposits covered by the scheme are not affected.

Changes include introducing a stand-down period of two weeks between a default and the Crown guarantee coming into force, and allowing the Crown to set a time-frame for claims.

The extended scheme will run from 12 October until the end of 2011.

Marac, the finance arm of Pyne Gould Corporation, says it supports the changes because it offers institutions more flexibility.