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Southern Cross, Canterbury building societies join extended retail deposit guarantee scheme

Southern Cross, Canterbury building societies join extended retail deposit guarantee scheme

Southern Cross, CBS join extended deposit guarantee scheme

Treasury has approved the Southern Cross Building Society and the Canterbury Building Society for entry into the extended Crown Retail Deposit Guarantee Scheme, meaning eight firms in total have now gained approval.

Treasury said copies of the Guarantee Deeds for the Southern Cross Building Society and the Canterbury Building Society wre now available on its website.

The current Retail Deposit Guarantee Scheme, introduced by then-Finance Minister Michael Cullen in October 2008, expires on October 12 this year. The extension scheme starts immediately afterwards running until December 31 next year.

Under the terms of the extended Crown guarantee, eligible depositors will be repaid up to NZ$250,000 each if the guaranteed institution fails to pay depositors back money they are owed. The current scheme provides for repayments to depositors of up to NZ$1 million.

Approval to the extended scheme has now been granted to the following:

* Canterbury Building Society

* Equitable Mortgages Limited

* Fisher & Paykel Finance Limited

* MARAC Finance Limited

* PGG Wrightson Finance

* South Canterbury Finance

* Southern Cross Building Society

* Wairarapa Building Society

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