National Party Leader and likely Prime Minister John Key has said he is in favour of a move to a bank deposit insurance scheme as long as it is a bipartisan move that the Reserve Bank believes is necessary. "I think if the situation deteriorates and it looks as though the Government needs to act in a way to ensure bank deposits, then I think that is necessary," Key was quoted as saying by the NZ Herald. Any such action would be a cross-party move and done in consultation with Australian authorities, Key was quoted as saying.
"We are quite happy to be engaged in the process and we want to make sure New Zealanders can have confidence in their banking system," he said. Key said he and National finance spokesman Bill English met Reserve Bank Governor Alan Bollard at the weekend and accepted that Bollard had the tools he needed at the moment to underpin the banking system in New Zealand. "But if there is a need to give him greater powers, then we are quite happy to work with him and the Australian authorities."