Bendigo clarifies exposure to the MIS mess
Bendigo and Adelaide Bank said it had about 8,200 borrowers and average loans of $75,000 to investors in tax-driven investment in the timber plantations of Great Southern Limited, which fell into administration two weeks ago.
The bank's total loans are thus around $615 million. Bendigo might also have increased its exposure to this type of loan in the weeks before the firm's failure.
A couple of weeks before the end Great Southern undertook a partial sale of its loan book, to what is believed to be Bendigo Bank, for 38 cents in the dollar. The loans are full recourse and the bank has not yet flagged any impact on profit.
Source: Sydney Morning Herald