New Zealand passes law guaranteeing bank deposits up to NZ$100,000

The legislation brings New Zealand in line with many developed and emerging economies with similar schemes, including several countries in Asia and Europe.

New Zealand passed a law on Thursday guaranteeing bank deposits up to NZ$100,000 ($60,770), a move it said would strengthen and protect its financial system.

The Deposit Takers Bill will cover some 93 per cent of all depositors in New Zealand in banks, credit unions, building societies and finance companies, Finance Minister Grant Robertson said in a statement.

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"This means eligible New Zealanders will be provided economic security if their bank or other deposit taking institution fails, while helping protect the country's financial system and wider economy," he said.

The legislation brings New Zealand in line with many developed and emerging economies with similar schemes, including several countries in Asia, Europe and North America.