Govt bank liability may be $275bn

Finance Minister Bill English. Photo/Brett Phibbs

The Government says consideration will have to be given to the length and extent of banking deposit and funding guarantee arrangements.

Information released today indicates the Government's contingent liability for taking steps to maintain confidence in the banking system is likely to hit $275 billion.

Finance Minister Bill English says it is possible the two-year length of the guarantee may have to be extended depending on what other countries do. He says alternatively it might be scaled down or limited.

English says they will be looking at New Zealand's unique banking position but will be influenced by the international debate.

-NEWSTALK ZB