Northern Inland’s savings and investment accounts are eligible for the Financial Claims Scheme (FCS) protection. Access to the FCS is limited to $250,000 per depositor per banking institution for new term deposits made after 10 September 2011 and all savings account deposits from 1 February 2012. Transitional arrangements apply for term deposits made before 10 September 2011 and new deposits between 10 September 2011 and 1 February 2012.
For more information on the Financial Claims Scheme see the Australian Prudential Regulatory Authority (APRA) website at www.apra.gov.au.
For more information on the Financial Claims Scheme see the Australian Prudential Regulatory Authority (APRA) website at .
Northern Inland is regulated by the APRA and has to meet the same strict legally enforceable regulatory standards applied to all Authorised Deposit-taking Institutions, such as banks, building societies and other credit unions. Being a mutual, all our loans are funded from retail deposits, not the volatile wholesale market and we do not need to engage in risky investment practices to ensure high returns for shareholders. Our policies do not allow us to invest in CDOs (Collateralised Debit Obligations) or CDSs (Credit Default Swaps).
We have retained our prudent lending criteria to ensure we focus on only quality borrowers. We have not lowered our credit standards. Consequently, our level of bad debts is one of the lowest in the industry.
Northern Inland is a local institution, with a well-developed and sound knowledge of our market and strong relationships with our Members. We have also implemented conservative and proven business practices to manage the provision of Member services. The oversight we receive from APRA has strengthened our already sound business model administered by our Board of Directors and senior management, and we believe this puts us in a firm position relative to some other market participants.
As a strongly regulated mutual, Northern Inland is safe and competitive with a range of savings, term deposits and loan products.