Ford Co-operative Credit Society Limited

Ford Co-operative Credit Society Limited
On 12 October 2008, the Australian Government announced guarantee arrangements for deposits with eligible Authorised Deposit-taking Institutions (ADI’s) which cover credit unions, building societies and banks. This means that deposits up to and including $250,000 per customer per institution are guaranteed by the Australian Government under the Financial Claims Scheme.

Credit Unions, building societies and banks are prudentially regulated and approved as Authorised Deposit-taking Institutions (ADIs). All ADIs are equally subject to the depositor-protection provisions of the banking act 1959 and overseen by the Australian Prudential Regulation Authority (APRA).

Credit Unions and building societies are subject to the same stringent, legally enforceable prudential standards as Australia’s major banks. These prudential standards cover capital, liquidity and credit quality and many other aspects of the ADI’s business, including governance and operational risk.

Credit Unions and building societies do not engage in sub prime loans and do not invest in complex securities based on sub prime loans. Credit Unions and building societies fund more than 80% of their lending from retail customer deposits, not the volatile wholesale market.

In addition to their status as ADIs regulated by APRA, building societies and credit unions are Australian Financial Services and Australian Credit Licensees regulated by ASIC, and are subject to the National Consumer Credit Protection Act, the ePayments Code and the full range of financial services regulation.
300 361 555
(03) 5221 1544