Treasury suggested on Friday the retail guarantee scheme may replaced with something else when it expired in October next year. Treasury updated its questions and answers section of its website with the following answer to the question: "Will the deposit guarantee scheme be replaced or extended after 12 October 2010?" "The government offered the deposit guarantee for a two-year term as a response to international financial market turbulence.This will give time to see how well international financial markets stabilise. A thorough assessment about the ongoing need for, and design of, an arrangement, if any, to replace the deposit guarantee scheme is being considered and options will be announced in due course."
This doesn't advance the situation that much, but does suggest alternatives and or extensions are being considered instead of a simple ending of the scheme. * This article was first published on Friday in our daily subscription newsletter for the banking and finance industries. The email costs NZ$365 per annum and carries exclusive news and analysis for New Zealand banking and finance industry executives, regulators and investors. Sign up for a free trial here.