Bank Turmoil Highlights New Zealand's Lack of Deposit Insurance

The video discusses the lack of deposit insurance in New Zealand, highlighting past financial crises and comparing it to other countries that offer such insurance. It explains that New Zealand is one of the few OECD countries without deposit insurance, which poses risks during financial instability. The Finance Minister assures that New Zealand banks have large capital reserves and are backed by Australian banks, but there are no immediate plans to expedite deposit insurance legislation, which is expected by 2023.

Which countries are mentioned as having deposit insurance?

• Bangladesh, Iraq, and Sudan

• Both B and C

• Australia, the United States, and Germany

• New Zealand and Israel

What is a potential risk for countries without deposit insurance?

• Increased interest rates

• A financial stampede during times of fear

• Higher taxes

• Decreased foreign investment

Which countries are the only OECD members without guaranteed bank deposits?

• Australia and the United States

• New Zealand and Israel

• Israel and Germany

• New Zealand and Australia

By when does New Zealand plan to have deposit insurance in place?

• 2023

• 2024

• 2021

• 2022

What assurance does the Finance Minister provide about New Zealand banks?

• They are fully insured by the government

• They have small capital buffers

• They hold significant reserves

• They are not affected by global markets