ABA backs governments FCS
(21 September 2011 – Australia) The Australian Bankers’ Association (ABA) praised the Federal Government’s ongoing Financial Claims Scheme (FCS).
The Treasurer, Wayne Swan, announced last week that there would be a new cap of A$250,000 from February 2012 per depositor in any one bank. This will replace the emergency cap put in place at the height of the Global Financial Crisis.
ABA chief executive Steven Münchenberg said that the combination of healthy, profitable banks and strong prudential regulation is the best guarantee we have that our money is safe in the bank. The FCS gives an additional layer of insurance.
"All banks in Australia are well regulated and closely supervised by the Australian Prudential Regulation Authority (APRA). While the FCS provides an additional safeguard, we should remember that no depositor has lost a material amount of a deposit in an Australian bank since 1890," Münchenberg said.
"Banks suggested a range of possible caps for the scheme. The cap of $250,000 announced by the Government puts Australia in step with other developed nations."
"The banking industry understands why the Government has delayed implementing the new cap until February 2012, given the ongoing uncertainties in overseas economies and financial markets," Mr Münchenberg concluded.
ABA chief executive Steven Münchenberg said that the combination of healthy, profitable banks and strong prudential regulation is the best guarantee we have that our money is safe in the bank. The FCS gives an additional layer of insurance.
"All banks in Australia are well regulated and closely supervised by the Australian Prudential Regulation Authority (APRA). While the FCS provides an additional safeguard, we should remember that no depositor has lost a material amount of a deposit in an Australian bank since 1890," Münchenberg said.
"Banks suggested a range of possible caps for the scheme. The cap of $250,000 announced by the Government puts Australia in step with other developed nations."
"The banking industry understands why the Government has delayed implementing the new cap until February 2012, given the ongoing uncertainties in overseas economies and financial markets," Mr Münchenberg concluded.
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