

Why New Zealand doesn't have deposit insurance - eru
http://www.rbnz.govt.nz/finstab/banking/regulation/3256868.html

======
russell
The Reserve Bank of New Zealand has decided that you folks dont need deposit
insurance, because it doesnt prevent runs on banks and you would have to wait
to get your money anyway, pretty much ignoring that deposit insurance is to
protect small depositors. In the US, deposit insurance is rarely used, because
the fed usually arranges for a takeover of the failing bank, but it is nice to
have in as a last resort.

I admit I didn't do a deep analysis, but I dont think I would want to opt for
lower moral risk and less prudent supervision at the expense of not actually
getting my money back

