The Reserve Bank is putting in place a new approach to troubled banks that will make it easier to resolve bank failures and should help to reassure retail depositors that their money is as safe with small banks as it is with larger banks.

And while regulators said the new resolution and deposit insurance framework would not have made much difference to the way the Bank intervened at Ubank, which was put into curatorship last week after its capital fell far below regulatory requirements, the framework will provide a better toolkit to deal with failing banks...