Federal Government Guarantee of Deposits
As part of the recently announced Financial Claims Scheme, The Federal Government will guarantee all deposits held in Australian-owned banks, Australian subsidiaries of foreign-owned banks, building societies and credit unions.
This will apply to the banking products and services offered by Community Sector Banking (CSB) - which are provided by Bendigo Bank.
Bendigo Bank is an Authorised Deposit-taking Institution, operates under the provisions of the Banking Act and is licensed to provide a range of other financial services to support its large customer base across Australia. The Federal Government’s guarantee of all deposits means that the deposits of all Bendigo Bank customers and CSB customers are now guaranteed by the Government.
The guarantee applies immediately and there is no limit on the size of the deposits covered.
The Government initiated this depositor guarantee to ensure Australia’s well run, strongly capitalised and effectively regulated banks - along with our strong domestic economy - were not disadvantaged by the changed conditions in the global financial markets. It was clearly important that the flow of overseas and wholesale funding continues to be available for the efficient and effective conduct of our domestic economy. It is also important that Australian depositors were afforded similar protection to depositors in other countries.
This guarantee is a positive reinforcement of the safety of CSB customer’s investment which has always been well protected by the strength of Bendigo and Adelaide Bank’s balance sheet, more than $2.1billion of capital and its sound and conservative lending practices.
Over Bendigo Bank’s 150 year history it has declared a profit each year and has, without fail, honoured its depositors.
Bendigo Bank has spent its entire existence in banking and deposit-taking and prides itself on focusing on the safety and security of depositors. It is well placed to continue to grow and develop over the next decade and will be working hard to ensure it protects the trusted position it holds with its growing customer base of 1.3 million Australians.
CSB is a key partner of Bendigo Bank and will continue to grow and serve the Community Sector with the support of Bendigo Bank.
Further information about the Government guarantee can be found here: www.treasury.gov.au