The Government has announced changes to the Financial Claims Scheme with the cap being reduced to $250,000 from 1 February 2012.
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How are deposits on Easy Street protected?
| Australia has one of the strongest banking systems in the world. You can have confidence that Easy Street and all Australian banking institutions – credit unions, banks and building societies – must meet the toughest regulatory standards and protections, designed to protect you.
| What is the Financial Claims Scheme (the deposit guarantee)?
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All banks, building societies and credit unions (including Easy Street) in Australia meet exceptional high standards and rules set by the Australian Prudential Regulation Authority (APRA). APRA also administers the Financial Claims Scheme, which provides additional protection for deposits.
The Financial Claims Scheme ensures that depositors with credit unions, banks, and building societies will be guaranteed repayment of their funds in the extremely unlikely event that any banking institution faces stress. The Scheme includes a guarantee of $250,000 per person per institution.
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Why has the Financial Claims Scheme cap changed?
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- The initial $1 million cap for the Financial Claims Scheme was an emergency response to the global financial crisis. It was introduced in 2008 for three years.
- Australia has the strongest banking sector in the world and the Government has decided this emergency response is no longer required, given our system’s clear strength.
- The new cap brings Australia into line with similar guarantee schemes overseas.
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How does this affect my deposits with Easy Street?
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The Scheme applies in exactly the same way to Easy Street as with all banks, credit unions and building societies. From 1 February 2012, deposits will benefit from a permanent $250,000 guarantee.
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Strict Australian regulation protects your deposits with Easy Street
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- Financial institutions like Easy Street meet the same strict standards as banks, under the Banking Act with strict oversight by APRA. APRA’s rules on safety and capital apply to all banks, building societies and credit unions to the same high standards.
- Easy Street as a mutual, is owned by our members. Our focus is therefore on your interests, and we are conservative and careful managers of our members’ money.
- Credit unions and mutual building societies have the highest level of capital in the banking system providing exceptional stability. Collectively, mutuals have combined assets over $80 billion, and over 4.5 million Australians as members.
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