Bank Deposit Guarantee Protection

HSBC welcomes the actions taken by governments around the world to support the banking system. Consistent with many other countries around the world, the Australian Government announced deposit guarantee plans to foster greater confidence in the community, safeguard Australians from the global financial crises, and protect deposits in Australian banks.

As a local subsidiary of the HSBC Group, HSBC Bank Australia Limited is eligible for the Australian Government’s deposit guarantee scheme.

Update as at 31 March 2010

In light of recent Australian Government announcements, here is an update with specific reference to HSBC deposits and wholesale funding.

Deposits of up to A$1 million with HSBC Bank Australia Limited will continue to be guaranteed at no cost under the Financial Claims Scheme. The guarantee will apply to the deposits held in eligible institutions, regardless of where the depositor resides. It will apply to deposits held in any currency. The cap will be reviewed in October 2011.

Effective 31 March 2010, the Australian Government withdrew its Guarantee Scheme for Large Deposits and Wholesale Funding.

Depositors who covered their balances above $1 million under the Guarantee Scheme have those funds covered to maturity, for term deposits up to five years, or until October 2015 for at call deposits.

Guaranteed wholesale liabilities will be guaranteed to maturity (which may be up to five years). Guarantee Scheme fees will continue to apply to maturity for wholesale liabilities.

For more information, please refer to the Australian Government deposit guarantee website.