Mutuals welcome changes to Financial Claims Scheme

Monday, 26 September 2011 13:19

Credit unions, building societies and mutual banks have greeted changes to the Financial Claims Scheme with open arms after an announcement made yesterday by the Australian Government.

The changes see a new permanent cap of $250,000 being imposed on all depositors to nationally regulated banking institutions. The new cap takes effect in February next year when the current cap of $1million will be removed.

The current $1million cap has been under review since May 2011 and according to Abacus, was only established due to widespread economical uncertainty in late 2008.

The announcement of the changes has been viewed as a positive reflection of the state of Australia’s banking institutions.

"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.