(11 February 2010 – Australia) Regional lenders Bendigo and Adelaide Bank have welcomed the end of the government’s guarantee on large deposits, allowing them to ‘compete clearly on the basis of service and value’.The Federal Treasurer, Wayne Swan, announced the end of the guarantee on large deposits at the end of last week; taking effect from March 31, 2010.
According to the managing director of Bendigo and Adelaide Bank, Mike Hirst, the removal of the government’s guarantee will enable the bank to complete clearly on the basis of service and value.
In particular, the councils and large businesses that may have felt compelled to chase lower-cost guarantees at larger banks can return safe in the knowledge that market conditions are returning to normal, Mr Hirst added.
The removal of the government guarantee is further evidence that the Australian financial services sector has emerged from the global financial crisis in good shape, Mr Hirst highlighted.
Bendigo and Adelaide Bank did not use the government’s guarantee on wholesale funding to raise funding in international markets.