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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