Appendix: Timeline of decisions and events
The Treasury: Implementing and managing the Crown Retail Deposit Guarantee Scheme.
| Date | Event |
|---|---|
| May 2005 | Announcement of a “Review of Financial Products and Providers” |
| December 2005 | Cabinet indicates prudential supervision for the financial sector should be consolidated into the Reserve Bank |
| May 2006 to September 2008 | 28 finance companies fail (receivership, liquidation, or in moratorium/frozen payments) |
| 12 September 2007 | Minister announces a new regulatory framework for non-bank deposit-takers (NBDTs) |
| 3 September 2008 | Part 5D of the Reserve Bank of New Zealand Act enacted, giving the Reserve Bank rule-making powers for NBDTs |
| 12 September 2008 | Announcement of 2008 General Election (Parliament dissolved on 3 October 2008) |
| 26 September 2008 | GDP figures for June show New Zealand is in recession |
| 30 September 2008 | Ireland guarantees bank deposits of six specific banks for two years (other countries follow) |
| 8 October 2008 | G7 Finance Ministers meet and call for “urgent and exceptional action” |
| 12 October 2008 | Australia announces its deposit guarantee scheme |
| 12 October 2008 | Crown Retail Deposit Guarantee Scheme (the Scheme) introduced Minister of Finance announces Scheme in a media statement, with further details provided in a joint media statement from the Treasury and the Reserve Bank |
| 13 October 2008 | The Treasury receives first application for the Scheme |
| 15 October 2008 | The Treasury receives 47 applications by this time |
| 15 October 2008 | The Reserve Bank and the Treasury release joint media statement providing further Scheme details |
| 22 October 2008 | The Treasury releases Policy Guidelines |
| 22 October 2008 | The Treasury releases “questions and answers” on its website (previously on the Reserve Bank’s website) |
| 29 October 2008 | First applications approved (for three banks) |
| 30 October 2008 | Final guarantee deeds available on the Treasury’s website for banks and NBDTs |
| 1 November 2008 | Wholesale Guarantee Scheme introduced |
| 8 November 2008 | Change of Government (National Party is elected) |
| 1 December 2008 | Start date for the Reserve Bank’s monitoring agreement with the Treasury |
| 31 December 2008 | The Treasury receives 125 applications by this time, with 63 applications approved |
| 2 March 2009 | First trigger of the guarantee: Mascot Finance Limited placed in receivership |
| 30 March 2009 | The Treasury receives its first monitoring report from the Reserve Bank based on data as at 31 January 2009. These reports were provided as part of the monitoring agreement with the Treasury and included a risk ranking report, sector reports, and detailed individual information for higher-risk entities |
| 30 March 2009 | The Treasury receives 134 applications by this time, with 86 applications approved |
| 9 April 2009 | First payouts to Mascot Finance Limited’s depositors (78% paid by end of June 2009) |
| 16 April 2009 | Strata Finance Limited triggers the guarantee following a failure to repay debt |
| 20 April 2009 | Viaduct Capital Limited guarantee withdrawn for new deposits (due to the business affairs of Viaduct being carried on in a manner inconsistent with the intentions of the guarantee) |
| 4 June 2009 | First payouts to Strata Finance Limited’s depositors (69% of payouts made on this day) |
| 12 June 2009 | The Treasury sends appointment letter for the first of the inspections under the Scheme (another five sent in June/July) |
| 23 July 2009 | Last application received |
| 25 August 2009 | The Treasury announces that the Scheme would be extended from 12 October 2010 to 31 December 2011 |
| 27 August 2009 | High Court ruling in relation to Mascot Finance Limited finds the Crown liable for interest accrued on guaranteed deposits between the date of default and the date claims are paid |
| 1 September 2009 | New Reserve Bank requirements for risk management programmes for NBDTs come into force |
| 12 September 2009 | Crown Retail Deposit Scheme Act 2009 passes to provide legislative authority for the Extended Scheme |
| 18 September 2009 | The Treasury releases Extended Scheme Policy Guidelines and eligibility criteria |
| 14 October 2009 | Financial Statements of the Government released with an $816 million provision for the Scheme |
| 18 November 2009 | The Treasury announces the Revised Scheme |
| 1 January 2010 | Revised Scheme begins – 86 replacement deeds issued to 63 entities (six entities elect not to accept) |
| 1 March 2010 | New Reserve Bank requirements for credit ratings for NBDTs come into force |
| 11 March 2010 | First entity signs up for the Extended Scheme (MARAC Finance Limited). A further seven entities are approved for the Extended Scheme between March 2010 and May 2010, including South Canterbury Finance Limited (which went into receivership before the start of the Extended Scheme) |
| 1 April 2010 | Vision Securities Limited placed in receivership |
| 30 April 2010 | Wholesale Guarantee Scheme closes to new applications |
| 7 May 2010 | Guarantee withdrawn for FAI Money Limited – no outstanding debt securities on issue |
| 10 May 2010 | Rockforte Finance Limited placed in receivership (guarantee applied only to deposits up to 31 December 2009 because Rockforte elected not to enter the Revised Scheme) |
| 14 May 2010 | Viaduct Capital Limited placed in receivership (guarantee applied only to deposits before the date of withdrawal of 20 April 2009) |
| 30 June 2010 | First payouts to Vision Securities Limited’s depositors (62% paid by end of July 2010) |
| 15 July 2010 | Mutual Finance Limited placed in receivership |
| 19 July 2010 | The Treasury signs services agreement with Computershare Investor Services Limited for the payout process |
| 20 August 2010 | Allied Nationwide Finance Limited placed in receivership |
| 27 August 2010 | First payouts to Rockforte Finance Limited’s depositors (72% paid by end of September 2010) |
| 31 August 2010 | South Canterbury Finance Limited placed in receivership, full payment of $1.8 billion made to Trustee |
| 31 August 2010 | Announcement that all depositors are to be repaid in all entities that have defaulted, regardless of previous eligibility criteria |
| 3 September 2010 | First payouts to Viaduct Capital Limited’s depositors (74% paid by end of September 2010) |
| 30 September 2010 | First payouts to Mutual Finance Limited’s depositors (72% paid on this day) |
| 12 October 2010 | Extended Scheme starts with seven entities participating |
| 15 October 2010 | The Treasury issues an extensive information release about South Canterbury Finance Limited |
| 29 October 2010 | First payouts to Allied Nationwide Finance Limited’s depositors (payouts complete by 30 November 2010) |
| 1 November 2010 | The Reserve Bank issues an information release about South Canterbury Finance Limited |
| 26 November 2010 | Equitable Mortgages Limited placed in receivership |
| 1 December 2010 | New Reserve Bank requirements for NBDTs relating to capital, liquidity, related-party exposures, and governance come into force |
| 8 December 2010 | The Treasury announces original Scheme payments complete with 38,000 depositors paid as at 31 August 2010 |
| 5 January 2011 | Three NBDTs merge to form Combined Building Society |
| 14 April 2011 | The Treasury issues a second information release about South Canterbury Finance Limited |
| 21 April 2011 | First payouts to Equitable Mortgages Limited’s depositors (35% of payouts completed by 12 May 2011) |
| 1 May 2011 | Financial Markets Authority forms to replace Securities Commission and certain functions of the Companies Office (such as the pre-registration checking of prospectuses) |
| 12 May 2011 | The Reserve Bank issues a second information release about South Canterbury Finance Limited |
| 1 September 2011 | Guarantee for PGG Wrightson Finance Limited withdrawn after acquisition by Heartland Building Society – only three entities remain in the Extended Scheme |
| 31 December 2011 | Extended Scheme due to expire |