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Bank Deposit Guarantee Protection
Australian Government’s Deposit Guarantee
There has recently been considerable coverage in the media of the state of global financial markets and some unprecedented government actions aimed at ensuring markets return to normal as quickly as possible. We thought it would be helpful to update you on how we at HSBC see things.
HSBC welcomes the actions taken by governments around the world to support the banking system as these are necessary steps in restoring confidence to the sector. Consistent with many other countries around the world, the Australian Federal Government has 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.
Update as at 2 December 2008
In light of the Government’s deposit guarantee announcements, here is an update with specific reference to HSBC deposits and wholesale funding.
Like all eligible Australian Authorised Deposit-taking Institutions (ADIs), deposits of up to A$1 million with HSBC Bank Australia Limited are guaranteed by the Government at no cost. 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.
Amounts over A$1 million can be guaranteed under the Australian Government Guarantee Scheme for Large Deposits and Wholesale Funding at an additional fee, by completing the application form. The applicable fee is 0.70% of the balance of deposits over A$1 million (or foreign currency equivalent). The guarantee for amounts over A$1 million can be cancelled by completing the termination form.
HSBC’s Strength
HSBC continues to exhibit strength despite continued market turbulence.
- HSBC Group is one of the world's largest financial services organisations, operating in 85 countries and territories and we remain committed to the continued expansion of our operations both in Australia and abroad.
- Over 120 million customers worldwide entrust HSBC Group with over A$1.8 trillion in deposits.
- With a tier one capital ratio of 8.8% and a loan to deposit ratio of 90% as at 30 June 2008, the HSBC Group remains one of the most strongly capitalised and liquid banks in the world.
- Reflecting our strong financial position, our local credit rating of AA has remained stable despite the current market volatility.
In challenging economic times, it is important to work with a financial partner you can trust to be there for the long term. At HSBC, we are committed to working with you now and for many more years in the future.
For further enquiries:
Call 1300 308 021 for personal/small business deposits
Call 1300 308 019 for corporate/commercial deposits
