Liquidity pressures and regulation will cause more fin coy failures

Peter Sikora, S&P director of financial institutions ratings, says "we're going to see more (finance company) failures, quite frankly," which are in a tougher situation than savings institutions as they face tougher barriers to the extended government guarantee and may struggle to meet their repayments when they fall due with the initial government scheme expiring in October.

"Five percent of single-rated B firms will default," Sikora said. "The stress will continue in the finance company space."

Five of 31 non-bank deposit takers with credit ratings have a B+ or lower rating, according to the Reserve Bank website.