Credit Unions complain about preferential guarante

Credit Unions released research from KPMG suggesting that the differential pricing of the government guarantee on wholesale funding is hurting competition. Whilst fundamentals are strong for the mutual ADI sector, KPMG noted that the retention of the retail deposit guarantee is important to support competition. However, the pricing on the wholesale funding guarantee disadvantages smaller institutions.

It’s time for the Government to consider improvements to the scheme pricing and to provide better access to wholesale funds to support competition in retail banking,” said Louise Petschler of Abacus, the industry association representing credit unions.

Australians already have a real choice in banking outside the “Big 4” – there is a genuine, strong and healthy banking alternative for consumers that is serving close to 4.6 million Australians and their banking needs: Australian credit unions and building societies.

Source: Abacus