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ISCOVER
The Council of Financial Regulators has revived
recommendations for a scheme to guarantee bank deposits in the case of an
Australian bank or ADI collapse.
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The Council “is working on an Early Access
Facility, which would provide early repayment of up to $20,000 per depositor in
a failed institution,” the review read.
It estimates
this cap would cover the entire deposits of around 80 per cent of depositors.
The Council is also reviewing the powers of the Australian Prudential Regulation Authority (APRA), recommending greater flexibility and power be given to APRA in making arrangements for a crisis-stricken ADI.
Published 28-03-08
