What is the Australian Government Large Deposit Guarantee Scheme?
The Australian Government Guarantee Scheme for Large Deposits and Wholesale Funding is a Federal Government initiative announced on 12 October 2008 that guarantees the deposits of customers of Authorised Deposit Taking Institutions (PDF 28kB).
The Scheme was closed to new applications from 31 March 2010.
Guarantees under the scheme will be capped at the amount guaranteed as of 31 March 2010. Current Guarantee holders will be able to change the amount guaranteed however it cannot exceed the guarantee amount as at 31 March 2010.
Existing guarantees for Large Deposits (more than A$1 million) will continue to be guaranteed, for a fee, until maturity (in the case of term deposits) or until October 2015 (in the case of at call deposits).
Deposits of up to A$250,000 will continue to be covered by the Financial Claims Scheme at no charge.
What deposits are covered by the Guarantee?
The Guarantee applies to deposits made by individuals, partnerships, businesses, (including in their offshore branches) trusts and government entities. View all eligible accounts (PDF 28kB).
Why is ANZ participating in this scheme?
Australian banks remain fundamentally sound, profitable, well capitalised and well regulated financial institutions and ANZ is amongst the top 30 AA or higher rated banks globally.
ANZ is participating in the Federal Government Deposit Guarantee Scheme to give customers an option to take out a Government Guarantee should they want to in the current economic climate.
This was written to provide you with information about the Australian Government Deposits Guarantee.
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For more detailed information on the Australian Government guarantees please refer to the Treasury website links below:
Wholesale Funding Guarantee:
- Available until "market conditions have normalised".
- Applies to senior unsecured vanilla debt securities for a maximum tenor of 5 years.
- Guarantee is irrevocable & unconditional.
- Australian Government will pay on demand in a timely manner.
- Guaranteed bonds will be AAA/Aaa rated by S&P and Moodys.
- APRA risk weighting is 0% (same as Government exposures).
- Certificates of deposit and bank bills will be covered under the WFG (not the DG).
- Visit the website for further details: Government Deposit Guarantee website.
|Credit Rating||Debt Issues Up to 60 Months|
|BB and Unrated||150 bp|
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