Are credit unions and mutual building societies safe?
Yes. All credit unions, mutual building societies and banks are Authorised Deposit-taking Institutions (ADIs), and are regulated in the same way as Australian banks. They are regulated by the Australian Securities and Investment Committee (ASIC) under the Corporations Act, and by the Australian Prudential Regulation Authority (APRA) under the Banking Act 1959. All ADIs – that is, all Australian credit unions, mutual building societies and banks – meet the same strict, legally-enforceable standards, under the Banking Act and strict oversight by the Australian Prudential Regulation Authority (APRA). APRA’s strict rules on safety and capital continue to apply to all banks, building societies and credit unions to the same high standards. Deposits in all ADIs up to $1 million are guaranteed by the Federal Government. Deposits greater than $1 million are also eligible to be guaranteed for a fee.
