It is not very often that one sees a market leader hike its deposit rates when the competitors are still some way off. But that's exactly what Bank of New Zealand did last week when it raised its five-month deposit rates by five basis points - a term where the bank has been a leader for some months now.

The past week saw a mix of cuts as well as hike in deposit rates even as the Reserve Bank’s cash rate didn’t say anything that the market didn’t already know.

Getting a bank licence could take up to two years from the time the three entities planning to form banking and financial services group complete their merger, an independent report from Cameron Partners and Northington Partners said.

Customer deposits at two of the largest banks grew significantly in the September quarter as investors sought the safety net and attractive rates on bank deposits ahead of the expiry of the government’s retail deposit guarantee scheme.

Kiwibank has once again trumped other banks in the deposit space, introducing a product that offers an attractive interest rate coupled with the flexibility that many would like to have.

PGG Wrightson Finance made big cuts to deposit rates for the 6-12 month term that saw the spread between the guaranteed and non-guaranteed rates narrow over those terms. But for 90-day deposit rates, the company made big upward moves and now offers the best rate among guaranteed finance companies.

Non-bank deposit takers may be subject to a new requirement that will require them to apply for the Reserve Bank’s approval when a transaction is likely to result in a person acquiring significant influence over the institution.

Days out from the end of the first government retail deposit guarantee scheme HSBC the only big bank to make some large moves.

Geneva Finance paid around $6.7 million of interest to investors on September 30 after repaying debenture holders and banking facilities ahead of schedule on June 29.

The collapse of some big finance companies recently has been an eye-opener for NZF Group which is now seeking to further reduce its reliance on debenture funding in favour of funding sources like Residential Mortgage Backed Securities.

Fisher & Paykel Finance has devised a strategy aimed at encouraging debenture investors in to investing in non-guaranteed investments.

There was some interesting rate movements in either direction last week but the most significant one came from Marac Finance.

The Reserve Bank has finalised liquidity policy for finance companies that will require the liquidity requirements to be quantified when it is included in the trust deed. The policy will also require the company and its trustee to take the liquidity of the borrowing group in to account along with the company itself.

The past week saw practically no action on the deposit rate front with institutions likely waiting for cues from the Reserve Bank's monetary policy statement.

The government’s move to cover all deposits under the retail deposit guarantee scheme has opened the door for investors to earn up to 125 basis points more for deposits termed excluded but now covered by the Crown guarantee.

Fisher & Paykel Finance's debenture reinvestment rates rose in recent months reflecting increased confidence from investors after the finance company received the government's approval under the extended retail guarantee scheme.