Bulletin 23 – RBA’s review notes strong credit unions, building societies

Credit unions and mutual building societies welcomed the RBA’s acknowledgement of their strong capital position in the Financial Stability Review, out today.

“Four and a half million Australians bank with credit unions and mutual building societies,” said Louise Petschler, Abacus CEO.

“We are the fifth-largest holder of household deposits, a major lender with consistently better rates than the banks and a branch network that exceeds the largest bank.”

“Being owned by our customers, we can focus on their needs and deliver well-managed banking services with competitive prices,” said Ms Petschler.

The Reserve Bank’s Financial Stability Review confirms Australia’s economy is on stable ground, with Australia’s banking system maintaining a strong capital position. The RBA notes that: “Tier 1 capital ratio is currently around 9.5 per cent, well above the regulatory minimum of 4 per cent. The credit union and building society sectors are also well capitalised, with aggregate total capital ratios of around 16 per cent.”

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