“..Bank funding guarantee likely to be dropped..”
“..New Zealand looks likely to ditch the wholesale funding guarantee for banks soon, after Australian Treasurer Wayne Swan announced on Sunday his country’s version would end next month.
New Zealand followed Australia’s lead by introducing the wholesale guarantee alongside a retail deposit guarantee during the depths of the global financial crisis in 2008.
The schemes were intended to ensure local banks could continue to access wholesale funding on overseas markets by using government balance sheets as a backstop.
Swan said the wholesale guarantee was no longer needed as the world recovered from the global downturn..”
go to source/story>>Bank funding guarantee likely to be dropped - Business - NZ Herald News