Deposit insurance, such as the Financial Claims Scheme (FCS) in Australia are common in OECD countries. On the 24 June 2019 the New Zealand Finance minister Grant Robertson announced "The Coalition Government today announced moves to make New Zealand's banking system safer for customers through a new deposit protection regime, and work to strengthen accountability for banks' actions."

a) Do you agree with the statement by the Finance minister? Explain why or why not.

b) The New Zealand government had previously been reluctant to introduce a deposit protection regime. Explain the disadvantages of deposit insurance.