Why did the Australian Government introduce the Guarantee Scheme for Large Deposits and Wholesale Funding?
On 12 October 2008, the Australian Government announced temporary arrangements to enable the provision of a guarantee for the deposits and wholesale funding of Australian deposit-taking institutions. In the lead up to this announcement, developments in international wholesale funding markets were restricting the ability of financial institutions both here and overseas to access funding, with potentially serious implications for liquidity and lending activity. To address these pressures, the Government guarantee arrangements were designed to promote financial system stability in Australia, by supporting confidence and assisting authorised deposit-taking institutions (ADIs) – banks, building societies and credit unions – to continue to access funding at a time of considerable turbulence. They were also designed to ensure that Australian institutions are not placed at a disadvantage compared to their international competitors that could access similar government guarantees on their wholes
Related Questions
- I saw an announcement regarding the withdrawal of the Governments Guarantee Scheme for Large Deposits and Wholesale Funding. Can you explain what it all means and how it affects me?
- I saw an announcement regarding the withdrawal of the Governments Guarantee Scheme for Large Deposits and Wholesale Funding. Can you explain what it all means and how it affects me?
- I saw an announcement regarding the withdrawal of the Governments Guarantee Scheme for Large Deposits and Wholesale Funding. Are my funds safe?
