Personal Savings Guarantee
#16
Banned
Joined: Oct 2008
Posts: 20
Re: Personal Savings Guarantee
Gina
#17
BE Forum Addict
Joined: Jun 2005
Location: Ayr then Hampshire; Now Beaumaris, Melbourne
Posts: 1,034
Re: Personal Savings Guarantee
Those were just a few examples to show how much of a surprise this last month has been. There are numerous other retail banks that have experienced major trouble - Northern Rock, HBOS, Kaupthing etc. Whilst the nature of the banking businesses differs (between Investment and Retail banks) the impacts are the same. Especially as many of the Retail Banks now have large-ish Treasury functions and sizeable exposures to derivatives. Sadly it's all very much linked.
#18
Re: Personal Savings Guarantee
Personally if I had large amounts of AUD cash then I would consider opening 2-3 accounts with different banks and therefore spreading the investment/risk. Aus banks will undoubtedly suffer, especially if the markets continue as they are. I doubt whether anyone can say for certain if this could lead to a complete collapse.
Also, deposits with a branch of a foreign bank will never have the same degree of "unofficial" local government protection.
Same applies for deposits with offshore subsidiaries of Australian banks, although some, like in the U.K., may be locally protected.
#19
Re: Personal Savings Guarantee
In the current climate, surely the Australian govt must put something in place to protect peoples savings in Australian banks??
How can Kevin Rudd travel the world and pass comment and opinion on other countries proposals (eg. the USA bailout) without ensuring money in banks here is protected?
People in glass houses shouldn't throw stones
How can Kevin Rudd travel the world and pass comment and opinion on other countries proposals (eg. the USA bailout) without ensuring money in banks here is protected?
People in glass houses shouldn't throw stones
#20
BE Forum Addict
Joined: Jun 2005
Location: Ayr then Hampshire; Now Beaumaris, Melbourne
Posts: 1,034
Re: Personal Savings Guarantee
In the current climate, surely the Australian govt must put something in place to protect peoples savings in Australian banks??
How can Kevin Rudd travel the world and pass comment and opinion on other countries proposals (eg. the USA bailout) without ensuring money in banks here is protected?
People in glass houses shouldn't throw stones
How can Kevin Rudd travel the world and pass comment and opinion on other countries proposals (eg. the USA bailout) without ensuring money in banks here is protected?
People in glass houses shouldn't throw stones
Kind of hard to throw stones when ones head is stuck way up ones arse.
I work in the banking industry and have detected since my arrival a certain degree of arrogance and a "it can't happen to us, we're too good" mentality.
#22
Banned
Joined: Oct 2008
Posts: 20
Re: Personal Savings Guarantee
I am afraid that doesn't follow! Why would we have to do something just because the Germans do it (or others)?
In some countries around the world, some banks' ratio of deposits/assets versus loans/liabilities has got out of balance due to investments those banks had that are now worthless. Therefore the governments had to put guarantees in place as otherwise no other bank would lend them money/trade with them (in simple terms).
Australian banks don't have that particular problem. Hence no need for those kinds of guarantees at the moment.
Gina
#23
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Joined: Jun 2005
Location: Ayr then Hampshire; Now Beaumaris, Melbourne
Posts: 1,034
#24
BE Enthusiast
Joined: Feb 2006
Location: UK to Sydney Feb 06
Posts: 738
Re: Personal Savings Guarantee
Gah, I can't decide what to do... just saw on another thread that the rate is up to 2.55 which would make our GBP12000 into AUD 30600... but I'm too scared that it's not safe to put the money in a bank over here
#25
Banned
Joined: Oct 2008
Posts: 20
Re: Personal Savings Guarantee
Of all the banks in the world there are 20 that are rated AA. Four of those twenty are in Australia! Whilst some of the UK banks are also rated AA, because of their current problems they are also rated "negative outlook/watch". Those four Australian AA banks are rated "stable".
The biggest of the four is the Commonwealth Bank of Australia. It used to be the "State Bank" but like all banks was privatised some years ago. Still - there is no way the government would let it fail.
The other big banks are Westpac, ANZ, and NAB.
You might want to stay away from the so-called 2nd tier banks like Bendigo Bank and Bank of Queensland. They don't have any problems but if you're worried stick with one of the Big Four.
Gina
#26
BE Enthusiast
Joined: Feb 2006
Location: UK to Sydney Feb 06
Posts: 738
Re: Personal Savings Guarantee
I think I'm just worried because of the fact that the UK banks will guarantee deposits of up to a certain amount but the Aussie ones won't... I guess I need to talk it over with DH and make a decision (quickly, really, while the rate is so good)
Edited to add: would probably put it into ANZ as that's who we bank with over here
Edited to add: would probably put it into ANZ as that's who we bank with over here
#27
Forum Regular
Joined: Oct 2003
Posts: 66
Re: Personal Savings Guarantee
for people moving over worried a about depositing in Australian Banks.
You could always deposit wit nationwide and then draw your cash here when you need it.
You are of course at the mercy of exchange rates but its an option.
Nationwide dont charge foreign transaction fees and you get a couple of cents less than the prevailing interbank rates when you withdraw.
In my opinion K Rudd will never legislate for deposits protection as the banks wont let him.
You have to ask yourself. If they say it will never happen here then why not offer the protection anyway.
You could always deposit wit nationwide and then draw your cash here when you need it.
You are of course at the mercy of exchange rates but its an option.
Nationwide dont charge foreign transaction fees and you get a couple of cents less than the prevailing interbank rates when you withdraw.
In my opinion K Rudd will never legislate for deposits protection as the banks wont let him.
You have to ask yourself. If they say it will never happen here then why not offer the protection anyway.
#28
Forum Regular
Joined: Nov 2007
Posts: 49
Re: Personal Savings Guarantee
So, just because the UK has a savings guarantee in place and some countries' governments now guarantee 100% of their banks (e.g. Germany), Kevin Rudd has to do the same?
I am afraid that doesn't follow! Why would we have to do something just because the Germans do it (or others)?
In some countries around the world, some banks' ratio of deposits/assets versus loans/liabilities has got out of balance due to investments those banks had that are now worthless. Therefore the governments had to put guarantees in place as otherwise no other bank would lend them money/trade with them (in simple terms).
Australian banks don't have that particular problem. Hence no need for those kinds of guarantees at the moment.
Gina
I am afraid that doesn't follow! Why would we have to do something just because the Germans do it (or others)?
In some countries around the world, some banks' ratio of deposits/assets versus loans/liabilities has got out of balance due to investments those banks had that are now worthless. Therefore the governments had to put guarantees in place as otherwise no other bank would lend them money/trade with them (in simple terms).
Australian banks don't have that particular problem. Hence no need for those kinds of guarantees at the moment.
Gina
#29
BE Enthusiast
Joined: Jan 2008
Posts: 371
Re: Personal Savings Guarantee
I dont want my money going to support a bloody bank just because they are greedy and incompetent.
No taxpayers money for bloody banks!!
#30
Forum Regular
Joined: May 2007
Location: Greenwith, Adelaide, South Australia!
Posts: 89
Re: Personal Savings Guarantee
From a quick look this morning there is a bit of a difference in what would happen should a bank go under in Oz than the UK.
This is all AFAIK IANAL etc etc
In the UK, bank goes under, you get your £50k and then stand in line like every other creditor to a failed business.
In Oz the depositors are first in line for payment, for a bank to lose all money and assets so that the depositors not get paid is low (from what I've read, but can believe it) and then all creditors after that will get what is left.
This makes savings to any level seem a bit more likely to be recouped, though I will admit I basing it on best guesstimate of a banks asset and cash versus just what they can *actually* lose.
This is all AFAIK IANAL etc etc
In the UK, bank goes under, you get your £50k and then stand in line like every other creditor to a failed business.
In Oz the depositors are first in line for payment, for a bank to lose all money and assets so that the depositors not get paid is low (from what I've read, but can believe it) and then all creditors after that will get what is left.
This makes savings to any level seem a bit more likely to be recouped, though I will admit I basing it on best guesstimate of a banks asset and cash versus just what they can *actually* lose.