Or any aussie bank for that matter? Do our deposits get any sort of protection or compensation if such unlikely event occurs?
Also they should hold Directors personally responsible and consficate all their assets in such a scenario.
I hope so, but is there actually any legal protection in place? Because I prefer not to simply rely on the government making a politically popular decision to cover our deposits. I checked APRA's website but it's very difficult to find if there is any legal protection.They are covered in the two big to fail category, as all of the "four pillars" are. Your deposits would be covered.
Also they should hold Directors personally responsible and consficate all their assets in such a scenario.
They are covered in the two big to fail category, as all of the "four pillars" are. Your deposits would be covered.
You know Barings Bank, the oldest merchant bank in London, also had never collapsed, until 1995.What I'd like to know if this subject is far too paranoid..
When has a PILLAR bank ever collapsed?
There is no legal requirement...banks are commercial institution you take a risk when you give them the money that why you get higher rate than bonds...
higher returns has some form of risk.
If you want risk free you buy government bonds
Government bonds aren't risk free. Nothing is risk free. The chance of a bank such as CBA going bust is absolutely tiny (but could happen). The chance of a government being unable to pay its debts is even more unlikely but it is a possible scenario - there is not a 100% guarantee with government bonds.
There is no legal requirement...banks are commercial institution you take a risk when you give them the money that why you get higher rate than bonds...
higher returns has some form of risk.
If you want risk free you buy government bonds
Yes there is, you guys need to read the basel agreement on banking. There is a gaureentee that you will bet your deposits back upto 100 grand and then at then discretionary beyond that point. There is a "to big to fail policy", which i touched on befoe which is in place for the big four. They would be bailed out well before any liquidity problems came up. Impossible for them to fall over.
When has a PILLAR bank ever collapsed?
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