This really isn’t what it appears to be.
NZ ended their FDIC program in 2011 and are looking to replace it with a new program called Open Bank Resolution to deal with a potential bank failure. The “potential” for a NZ bank failure is extremely low. Their system is nothing like the EU. Their “Reserve Bank” is much like our Federal Reserve system. Unlike the US however, they’re system is far more conservative and more conservatively run than the US or even Britain.
Good call, this is the leftists stirring the pot. This doesn’t have the negative incentives of FDIC insurance.
If they couple it with transparency and rating requirements that are public it should work fine. No bank would want to have a run.