Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Mutuals welcome government announcement

business learning business learning
James Mitchell 4 minute read

COBA has praised the government on moving quickly to allow all credit unions and building societies to use the term ‘bank’.

Australia’s customer-owned financial institutions are authorised deposit-taking institutions (ADIs), like banks, and are subject to the same prudential regulatory framework as banks and the government’s deposit guarantee under the Financial Claims Scheme.

“It makes sense that all ADIs should be able to choose to use the term ‘bank’ to explain what they do – which is banking,” said the CEO of the Customer Owned Banking Association, Mark Degotardi.

“The historic restriction on use of the term ‘bank’ by ADIs with more than $50 million in capital is out-of-date and no longer relevant,” he said. “We welcome the government’s move to level the playing field.”

Advertisement
Advertisement

There are currently 18 customer-owned banks providing in the retail banking market. COBA believes these former credit unions and building societies are likely to be joined by many of the 60 other customer-owned banking institutions currently trading as credit unions and building societies.

“Some credit unions and building societies may prefer not to rebrand but at least now they will have a choice,” he said.

“This draft legislation is the latest instalment of the government’s agenda to promote competition in banking. COBA congratulates the government on its commitment to this agenda and its delivery of positive reform.

“We look forward to engaging with the government on the draft legislation.”

Mutuals welcome government announcement
business learning
TheAdviser logo

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

PROMOTED CONTENT


business learning
James Mitchell

James Mitchell

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.

He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.

James holds a BA (Hons) in English Literature and an MA in Journalism.

 

 

more from the adviser
REA Group logo

Breaking News

Mortgage Choice, Smartline to run as one brand

The two brokerages will operate under one brand, effective in 202...

handshake news

Breaking News

COG makes acquisition moves

COG Financial Services has grabbed larger stakes in Westlawn and ...

money grants

Breaking News

SocietyOne doubles funding, launches secured loan to public

The personal lender has announced a $200 million warehouse facili...