Mutuals welcome changes to Financial Claims Scheme
Credit unions, building societies and mutual banks have greeted changes to the Financial Claims Scheme with open arms after an announcement made by the Australian Government.
Under the new deposit guarantee scheme, the Federal Government will introduce a permanent deposit guarantee of $250,000 (per person per institution) from 1 February 2012 - one of the highest permanent deposit protection schemes in the world.
Until the permanent deposit cap is introduced, its current $1 million guarantee on deposits, which was introduced at the height of the Global Financial Crisis and was due to expire in October, has been extended.
"Today's announcement is a vote of confidence in the strength and stability of Australia's banking institutions, including mutuals," said Louise Petschler, Abacus CEO.
