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Crown Retail Deposit Guarantee Scheme
The Crown Retail Deposit Guarantee Scheme was an opt-in deposit insurance scheme, established under the Public Finance Act 1989 in New Zealand during the Great Recession, 2008 to 2011. Dr Michael Cullen, Finance Minister at the time of the scheme's introduction said, "The deposit guarantee is designed to give assurance to New Zealand depositors. The New Zealand banking system remains sound. We want to ensure that ordinary New Zealanders feel that their deposits are safe in the current uncertain international financial market conditions." The scheme guaranteed that the New Zealand Government would repay those who lost money in failed financial institutions. It was implemented on 12 October 2008, administered by Treasury and the Reserve Bank and at its height resulted in Crown guarantees over $133 billion. Ninety-six institutions were covered by the scheme - 60 non-bank deposit takers, 12 banks A bank is a financial institution that accepts deposits from the public and creat ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Deposit Insurance
Deposit insurance, deposit protection or deposit guarantee is a measure implemented in many countries to protect bank depositors, in full or in part, from losses caused by a bank's inability to pay its debts when due. Deposit insurance or deposit guarantee systems are one component of a financial system safety net that promotes financial stability. Process Banks are allowed (and usually encouraged) to lend or invest most of the money deposited with them instead of safe-keeping the full amounts (see fractional-reserve banking). If many of a bank's borrowers fail to repay their loans when due, the bank's creditors, including its depositors, risk loss. Because they rely on customer deposits that can be withdrawn on little or no notice, banks in financial trouble are prone to bank runs, where depositors seek to withdraw funds quickly ahead of a possible bank insolvency. Because banking institution failures have the potential to trigger a broad spectrum of harmful events, including ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Great Recession
The Great Recession was a period of market decline in economies around the world that occurred from late 2007 to mid-2009.“US Business Cycle Expansions and Contractions” United States NBER, or National Bureau of Economic Research, updated March 14, 2023. This government agency dates the Great Recession as starting in December 2007 and bottoming-out in June 2009. The scale and timing of the recession varied from country to country (see map). At the time, the International Monetary Fund (IMF) concluded that it was the most severe economic and financial meltdown since the Great Depression. The causes of the Great Recession include a combination of vulnerabilities that developed in the financial system ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Michael Cullen (politician)
Sir Michael John Cullen (5 February 1945 – 19 August 2021) was a New Zealand politician. He was a Member of the New Zealand House of Representatives from 1981 to 2009, the Deputy Leader of the New Zealand Labour Party from 1996 to 2008 and a senior minister in the Fifth Labour Government of New Zealand, Fifth Labour Government from 1999 to 2008, serving as Deputy Prime Minister of New Zealand, Deputy Prime Minister, Minister of Finance (New Zealand), Minister of Finance, and Attorney-General (New Zealand), Attorney-General. Cullen was first elected in 1981 as the Member of Parliament for St Kilda (New Zealand electorate), St Kilda after a ten-year career as a history lecturer at the University of Otago. He was a junior minister in the second term of the Fourth Labour Government of New Zealand, Fourth Labour Government, where his appointments as Minister for Social Development (New Zealand), Minister of Social Welfare and Associate Minister of Finance (New Zealand), Associate M ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Government Of New Zealand
The New Zealand Government () is the central government through which political authority is exercised in New Zealand. As in most other parliamentary democracies, the term "Government" refers chiefly to the executive branch, and more specifically to the collective ministry directing the executive. Based on the principle of responsible government, it operates within the framework that "the reigns, but the government rules, so long as it has the support of the House of Representatives".Sir Kenneth Keith, quoted in the Cabinet Manual'. The '' Cabinet Manual'' describes the main laws, rules and conventions affecting the conduct and operation of the Government. Executive power is exercised by ministers, all of whom are sworn into the Executive Council and accountable to the elected legislature, the House of Representatives. Several senior ministers (usually 20) constitute a collective decision-making body known as the Cabinet, which is led by the prime minister (currently ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
New Zealand Treasury
The New Zealand Treasury () is the central public service department of New Zealand charged with advising the New Zealand Government, Government on economic policy, assisting with improving the performance of Economy of New Zealand, New Zealand's economy, and managing financial resources. The Minister responsible for the Treasury is the Minister of Finance (New Zealand), Minister of Finance of New Zealand; however, from 1996 to 2002, there existed a more specific position of Treasurer of New Zealand. The role was created for Winston Peters by the Fourth National Government of New Zealand, Fourth National Government under Jim Bolger after the 1996 election, and abolished by Helen Clark’s government in 2002. Treasury has four main functions: * Provide advice to improve economic and fiscal conditions for high levels of economic growth and improved living standards. * Monitor and manage the financial affairs of the Crown. * Assess and test other Government agencies’ advice and pr ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Reserve Bank Of New Zealand
The Reserve Bank of New Zealand (RBNZ) () is the central bank of New Zealand. It was established in 1934 and is currently constituted under the ''Reserve Bank of New Zealand Act 2021''. The current acting governor of the Reserve Bank, Christian Hawkesby, is responsible for New Zealand's currency and operating monetary policy. History The Reserve Bank of New Zealand was established from 1 August 1934 by the ''Reserve Bank of New Zealand Act 1933''. The Reserve Bank first issued banknotes in 1934, see New Zealand pound. The ''Banking (Prudential Supervision) Act 1989'', which came into effect in February 1990, resulted in the Reserve Bank becoming independent of government control in RBNZ's role of managing monetary policy by introducing an inflation targeting mandate. New Zealand was the first country in the world to try this regime, which was later adopted in other countries. The ''Reserve Bank of New Zealand Amendment Act 2008'' included amendments to the ''BPSA 1989'', ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Financial Institution
A financial institution, sometimes called a banking institution, is a business entity that provides service as an intermediary for different types of financial monetary transactions. Broadly speaking, there are three major types of financial institution: # Depository institution – deposit (finance), deposit-taking institution that accepts and manages deposits and makes loans, including bank, building society, credit union, trust company, and mortgage broker; # Contractual institution – insurance company and pension fund # Investment institution – investment banking, investment bank, underwriter, and other different types of financial entities managing investments. Financial institutions can be distinguished broadly into two categories according to ownership structure: * commercial bank * cooperative banking, cooperative bank Some experts see a trend toward homogenisation of financial institutions, meaning a tendency to invest in similar areas and have similar business str ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bank
A bank is a financial institution that accepts Deposit account, deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets. As banks play an important role in financial stability and the economy of a country, most jurisdictions exercise a high degree of Bank regulation, regulation over banks. Most countries have institutionalized a system known as fractional-reserve banking, under which banks hold liquid assets equal to only a portion of their current liabilities. In addition to other regulations intended to ensure accounting liquidity, liquidity, banks are generally subject to minimum capital requirements based on an international set of capital standards, the Basel Accords. Banking in its modern sense evolved in the fourteenth century in the prosperous cities of Renaissance Italy but, in many ways, functioned as a continuation of ideas and concepts o ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Collective Investment Schemes
An investment fund is a way of investing money alongside other investors in order to benefit from the inherent advantages of working as part of a group such as reducing the risks of the investment by a significant percentage. These advantages include an ability to: * hire professional investment managers, who may offer better returns and more adequate risk management; * benefit from economies of scale, i.e., lower transaction costs; * increase the asset diversification to reduce some unsystematic risk. It remains unclear whether professional active investment managers can reliably enhance risk adjusted returns by an amount that exceeds fees and expenses of investment management. Terminology varies with country but investment funds are often referred to as investment pools, collective investment vehicles, collective investment schemes, managed funds, or simply funds. The regulatory term is undertaking for collective investment in transferable securities, or short collective inves ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bailout
A bailout is the provision of financial help to a corporation or country which otherwise would be on the brink of bankruptcy. A bailout differs from the term ''bail-in'' (coined in 2010) under which the bondholders or depositors of global systemically important financial institutions (G-SIFIs) are forced to participate in the recapitalization process but taxpayers are not. Some governments also have the power to participate in the insolvency process; for instance, the U.S. government intervened in the General Motors bailout of 2009–2013. A bailout can, but does not necessarily, avoid an insolvency process. The term ''bailout'' is maritime in origin and describes the act of removing water from a sinking vessel using a bucket. Overview A bailout could be done for profit motives, such as when a new investor resurrects a floundering company by buying its shares at firesale prices, or for social objectives, such as when, hypothetically speaking, a wealthy philanthropist reinvent ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
South Canterbury Finance
South Canterbury Finance was New Zealand's largest locally owned finance company when it collapsed in August 2010, triggering a $1.6 billion bail-out of investors deposits by the New Zealand Government; almost $1 billion was recovered by receivers. History In 1926, South Canterbury Finance Ltd started as a small-time lender to local businesses and households in the south Canterbury town of Timaru. It was then named South Canterbury Loan and Finance and it specialised in small personal loans. Allan Hubbard bought South Canterbury Finance in either the 1950s or in 1960. Lee says that Hubbard and Hugo Fanning established South Canterbury Acceptances and South Canterbury Credit Corp by 1960. They acquired South Canterbury Finance (SCF) by 1963 from a group of businessmen including a member of the Todd family. In 1964 Hubbard bought Fanning out, becoming the sole owner. The "originally modest" company began to achieve "real size" after buying Canterbury Finance from Humphrey Rolleston i ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Finance Company Collapses, 2006-12 (New Zealand)
Finance refers to monetary resources and to the study and discipline of money, currency, assets and liabilities. As a subject of study, is a field of Business Administration wich study the planning, organizing, leading, and controlling of an organization's resources to achieve its goals. Based on the scope of financial activities in financial systems, the discipline can be divided into personal, corporate, and public finance. In these financial systems, assets are bought, sold, or traded as financial instruments, such as currencies, loans, bonds, shares, stocks, options, futures, etc. Assets can also be banked, invested, and insured to maximize value and minimize loss. In practice, risks are always present in any financial action and entities. Due to its wide scope, a broad range of subfields exists within finance. Asset-, money-, risk- and investment management aim to maximize value and minimize volatility. Financial analysis assesses the viability, stability, and ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
