Treasury and Reserve Bank officials are looking at an extension to the bank guarantee scheme.
The Government announced on 12 October that it would guarantee for two years retail deposits for banks, credit unions and finance companies that opt into the scheme. The potential liability of the guarantee is $450 billion.
The National Party has called for the Government to speed up an extension to the guarantee to cover money borrowed from financial institutions and from overseas.
Finance Minister Michael Cullen said on Sunday that Reserve Bank and Treasury officials have been working on a possible wholesale deposit guarantee scheme.
In a Radio New Zealand debate on the economy, Dr Cullen said that there was no need for urgent decisions because no financial institutions have immediate problems with credit lines, and such a decision needed to be worked through carefully.
Prime Minister Helen Clark has confirmed that work is under way on a possible extension, but she has given no hint about when one might be introduced.
Miss Clark said the timing of any extension would not be dictated by the election campaign.
