After the government decided that it will be winding up its much-talked about retail deposit guarantee scheme in the coming 14 months time, a lot of consideration is being done by the banks for their deposit insurance schemes. The New Zealand banks are one of the major beneficiaries of the guarantee scheme.

This is the first time since September 2008 that the Reserve Bank of New Zealand has come out with topics and discussion that deal with bank deposit insurance.

It is now said that the apex bank is looking at its options in the deposit insurance field. This is so because Australia, the biggest trading partner of New Zealand, is also considering its insurance schemes.

Moreover, trend shows that the investors in New Zealand are now looking at safety for their deposits. No doubt then those banks are going to take serious measures if insurance gets instigated in Australia.

The retail deposit guarantee scheme was started by the government just two years back and was done with an aim to increase retail investor confidence so that the financial crisis could be reduced. But the extension of the program was suspended.