Are your deposits safe?

A question many watching the events in Cyprus will ask.  Without going into detail about the local deposit insurance scheme for Australian banks, it was interesting to note that some online observers noticed the following policy update from the Reserve Bank of New Zealand that has depositors seeing their funds partly frozen in the event the central bank enacts a resolution.

...In addition, a portion of depositors’ and other unsecured creditors’ funds will be frozen to bear any remaining losses. To the extent that these funds are not required to cover losses as more detailed assessment of the position of the bank is completed, these funds will be released to depositors. At a high level, this outcome replicates the outcome that would apply in the event that a failed bank was liquidated. The primary advantage of the OBR scheme, however, is that depositors would have access to a large proportion of their balances throughout the process. This contrasts with what would happen under a normal liquidation, where depositors might not have access to any of their funds for a significant period....(here).

Meanwhile regulator APRA has pushed for full implementation of capital and liquidity requirements on Australian banks - a sign of greater pressure on banks and slower future growth, but any sign of weakness?

...While Australia had a more moderate experience in the lead-up to the crisis, Mr Edey said there was no doubt that some parts of the global financial system overexpanded by "a significant margin". This had been driven by one-off factors, such as deregulation and low inflation, that had now run their course...."On any reading, it seems clear this will be an environment where it's harder in general for banks and for the system as a whole to grow," he said.... (here)