The New Zealand government will introduce a deposit protection regime and begin work to strengthen oversight of the country's banking sector.
New Zealand Finance Minister Grant Robertson says the government will introduce a deposit protection regime and begin work to strengthen oversight of the country's banking sector.
"New Zealand has been an outlier for many years in that we don't have a formal deposit protection regime to support Kiwis if a bank were to fall over," Robertson said in a statement.
The government would also work on whether bank executives' accountability should be ramped up and the central bank's supervisory role strengthened after the resignation of ANZ Bank's New Zealand chief executive and the bank losing permission to run its own risk assessments.
The Reserve Bank of New Zealand (RBNZ) has also asked for two reports from the local unit of ANZ to provide assurance it was operating prudently.
The first report will cover ANZ NZ's compliance with RBNZ's current and historic capital adequacy requirements and the second will assess the effectiveness of ANZ NZ's Director's Attestation and Assurance framework, focusing on internal governance, risk management and internal controls.
ANZ NZ, the biggest of the four Australian-owned banks that dominate the Kiwi market, said it has NZ$12.4 billion ($A11.8 billion) of capital as at March 31, which the lender says is NZ$3.5 billion ($A3.3 billion) more than required.