Advertise with us (we do not endorse any site advertised)

Author Topic: National planning Cyprus-style solution for New Zealand  (Read 2198 times)

0 Members and 1 Guest are viewing this topic.

Offline bitcoinforum.comTopic starter

  • Administrator
  • Legendary Member
  • *******
  • Joined: Nov 2011
  • Location:
  • Posts: 1497
  • Country: bz
  • Thanked: 60 times
  • Karma: +41/-1
  • Gender: Male
  • The Bitcoin genie is already out of the bottle.
    • View Profile
National planning Cyprus-style solution for New Zealand

The National Government are pushing a m Cyprus-style solution to bank failure in New Zealand which will see small depositors lose some of their savings to fund big bank bailouts, the Green Party said today.Open Bank Resolution (OBR) is Finance Minister Bill English’s favoured option dealing with a major bank failure. If a bank fails under OBR, all depositors will have their savings reduced overnight to fund the bank’s bail out.

“Bill English is proposing a Cyprus-style solution for managing bank failure here in New Zealand – a solution that will see small depositors lose some of their savings to fund big bank bailouts,” said Green Party Co-leader Dr Russel Norman.

“The Reserve Bank is in the final stages of implementing a system of managing bank failure called Open Bank Resolution. The scheme will put all bank depositors on the hook for bailing out their bank.

“Depositors will overnight have their savings shaved by the amount needed to keep the bank afloat.

“While the details are still to be finalised, nearly all depositors will see their savings reduced by the same proportions.

“Bill English is wrong to assume everyday people are able to judge the soundness of their bank. Not even sophisticated investors like Merrill Lynch saw the global financial crisis coming.

“If he insists on pushing through this unfair scheme, small depositors can be protected ahead of time with a notified savings threshold below which their savings will be safe from any interference.”

Dr Norman questioned the Government’s insistence on pursuing Open Bank Resolution when virtually no other OECD country uses it.

“Open Bank Resolution is unprecedented in the world. Most OECD countries run deposit insurance schemes which protect people’s deposits up to a maximum ranging from $100,000 – $250,000,” Dr Norman said.

“OBR is not in line with Australia, which protects bank deposits up to $250,000.

“A deposit insurance scheme is a much simpler, well-tested alternative to Open Bank Resolution. It rewards safe banks with lower premiums and limits the cost to taxpayers of a bank failure.

“Deposit insurance will, however, require the Reserve Bank to oversee and regulate our banks more closely – a measure which is ultimately the best protection against bank failure.”
"Your keys, your Bitcoin. Not your keys, not your Bitcoin." (Andreas Antonopoulos)
Latest stable Bitcoin version
Latest stable Electrum version States Cyprus Style Depositor Haircuts Possible in US

Started by

Replies: 0
Views: 1907
Last post March 20, 2013, 09:06:36 PM
by The controlled demolition of Cyprus

Started by

Replies: 1
Views: 2819
Last post March 18, 2013, 04:01:38 PM
Cyprus bail-out: savers will be raided to save euro in future crises

Started by

Replies: 0
Views: 2399
Last post March 27, 2013, 10:32:56 AM
Cyprus crashes. Bitcoin not affected

Started by

Replies: 0
Views: 4860
Last post April 08, 2013, 10:26:25 PM
KYCbench Tier 1 Banking Institution KYC/AML solution

Started by KYCbench

Replies: 0
Views: 738
Last post October 16, 2018, 03:35:04 PM
by KYCbench

your ads here