LCU is an Approved Deposit Taking Institution (ADI) as are the banks. We are prudentially regulated by the Australian Prudential Regulatory Authority (APRA). All ADI’s are subject to the depositors protection provisions of the Banking Act of 1959.
As part of the new Financial Claims Scheme (FCS), on the afternoon of 12 October 2008 the Prime Minister Mr Kevin Rudd announced a three year guarantee for all deposits up to $1 million held with Credit Unions, Australian Banks, and Building Societies.
On Sunday 7th of February 2010, the Treasurer Wayne Swan announced the threat from the global financial crisis has reduced to a level where it can begin to remove some of its guarantees. The guarantees that the government are removing at the end of March 2010 affect deposits over $1 million.
The guarantee for deposits up to $1 million will remain until at least October 2011.
Your Board and Management would like to communicate LCU's strong financial position and take this opportunity to assure our member-owners that LCU is a safe and secure financial institution worthy of your confidence. The foundation of our success has been our sound business practices and our commitment to protecting our member-owners’ assets.
LCU and other Credit Unions meet the same strict, legally enforceable standards as banks under the Banking Act regulated by the Australian Prudential Regulation Authority (APRA). Credit Unions are prudent and responsible lenders. Credit Unions have the lowest levels of arrears in the Australian lending market.
On the face of things, credit unions and banks may look similar. We offer similar services and have similar products. But there is a distinct difference. Banks exist to make profits and pass the money along to their shareholders. Credit unions exist to serve their members through people helping people.
We are committed to continuing to provide superior service while maintaining your trust and confidence.
