Bankstown City Credit Union - Government Deposit Guarantee

Government Deposit Guarantee

What is the new Government deposit guarantee?

The Prime Minister announced on 12 October 2008 a new scheme to guarantee for three years all deposits held in credit unions, building societies and banks in Australia. This guarantee applies to Bankstown City Credit Union member's deposits.
The new Scheme ensures that depositors with Australian credit unions, banks, and building societies will be guaranteed repayment of their funds in the extremely unlikely event that any banking institution faces stress. This means that Bankstown City Credit Union member's deposits have the backing of the Government for the next 3 years.
There is no cap on the guarantee. However, after 28th November 2008, the Government will be imposing a levy to guarantee deposits in excess of $1 million.
The scheme is a response to the global economic conditions currently being experienced in global financial markets, and is an extra confidence measure for the already strong Australian banking system.

How does this affect Bankstown City Credit Union?

Bankstown City Credit Union is safe and secure. The same measures of protections and laws that apply to the banks also apply in full to Bankstown City Credit Union.
The new Government deposit guarantee applies in exactly the same way to deposits with Bankstown City Credit Union as it does with all credit unions, banks and building societies - all are fully covered by the backing of the Australian Government.
Savings with Bankstown City Credit Union are now backed not only by our strong performance and member-focus, but also by a Government guarantee.

Strict Australian regulation protects your deposits

Bankstown City Credit Union meets the same strict, legally-enforceable standards as banks, under the Banking Act and strict oversight by the Australian Prudential Regulation Authority (APRA).
The Australian prudential regulatory regime is designed to ensure that depositors do not lose money. APRA's strict rules on safety and capital continue to apply to Bankstown City Credit Union.

Bankstown City Credit Union - a safe haven

As a mutual, our focus is on our members, and we are conservative and careful managers of our members' money.
Bankstown City Credit Union is well capitalized. At June 30 2008, our capital ratio was over 20%, compared to the already high 10.6% for banks.
Bankstown City Credit Union is also highly liquid. At June 30 2008, liquidity ratios were almost double that required by the regulatory body.
This demonstrates Bankstown City Credit Union's strength and our focus on conservative, prudent management of our members' money.
Bankstown City Credit Union does not have any direct exposure to the US sub prime markets and does not invest in equity (stock) or other risky markets.
Bankstown City Credit Union only lends funds to ordinary Australians, mainly backed by mortgages over their homes.