Nine credit unions are now banks

Since 2011, when the Australian Prudential Regulation Authority approved the use of the name "mutual bank" for mutuals with minimum capital of A$50 million, bankmecu, QT Mutual Bank, Heritage Bank, Defence Bank, Victoria Teachers Mutual Bank, Teachers Mutual Bank, P&N Bank, Police Bank and now BankVic have all taken up the opportunity.

QT Mutual Bank was one of the first to change. Its chief executive, Mike Murphy, said it was a good move. The chief executive of Defence Bank, Jon Linehan, said: "People think that a credit union has a limited product set. When you are a bank they assume you offer the full range."

Defence Force Credit Union became Defence Bank in February last year. Linehan said the bank would report 20 per cent growth in mortgage lending for the year to the end of June.

Source: Banking Day