When you invest your hard-earned money, you're looking for both a sound return and peace-of-mind.
So while striving to provide competitive and attractive products and services, we've also made a commitment to offer you quality, safety and security.
Our policies and controls have produced a consistent record of stability and growth and helped form a strong foundation for the future.
When making the decision to invest, the following facts may help answer some of the questions you may have:
Australian Government guarantees customer deposits
On 12 September 2011, the Australian Government announced that the guarantee of Wide Bay Australia customer deposits (as provided under the Financial Claims Scheme) would be extended indefinitely.
The new guarantee limit applicable from 1 February 2012 is $250,000 per account-holder per ADI on 'protected accounts' as defined under the Banking Act 1959. Click here for a list of Wide Bay Australia accounts (PDF, 125KB) covered by the Financial Claims Scheme.
'Account-holder' is defined in section 5(1) of the Banking Act 1959 as 'an entity (as defined in section 960-100 of the Income Tax Assessment Act 1997) that holds in its name, or keeps in its name, (either alone or jointly with another entity) an account or covered financial product with an Authorised Deposit-taking Institution (ADI)'. Therefore each distinct account-holder is covered by the guarantee on 'protected accounts' up to $250,000 per ADI. This includes entities such as individuals, businesses and self managed superannuation funds. A 'husband and wife' holding a joint account' are considered to be two individuals so both are covered up to $250,000 each on their Wide Bay Australia 'protected accounts'.
You can read the Treasurer’s announcement here. Key features of the changes to the Scheme, including the applicable guarantee limits are contained in the Frequently Asked Questions.
On 12 October 2008, responding to volatility in the global financial markets, the Prime Minister announced that the Australian Government would guarantee deposits held by Wide Bay Australia customers under the Financial Claims Scheme.
One of the principal purposes of the Financial Claims Scheme is to protect depositors of Authorised Deposit-taking Institutions (ADI’s) - which includes Australian building societies, banks and credit unions - from potential loss due to the failure of these institutions.
The Scheme provides protections to depositors up to the limits of the Scheme and seeks to provide depositors with timely access to their deposits in the event of the failure of one of these ADI’s.
The Government was able to provide the Guarantee to 'protected' deposit customers as Wide Bay Australia Ltd is a recognised ADI operating under the Banking Act 1959 and is prudentially supervised by the Australian Prudential Regulation Authority (APRA).
Wide Bay Australia welcomes the Government’s efforts to reassure Australians that their deposits in Australian building societies, banks and credit unions are secure, however regardless of the guarantee and applicable limits, Wide Bay Australia's operations remain extremely sound and profitable and our policies and controls have produced a consistent record of stability and growth - even throughout the recent Global Financial Crisis.
Built on a Strong Foundation
Our history demonstrates a solid record of strength, growth and stability.
Supervision and Regulation
Australian Prudential Regulation Authority:
As an Australian building society – Wide Bay Australia Ltd is a type of Authorised Deposit-taking Institution (ADI) - a corporation authorised under the Banking Act 1959.
ADIs include Australian building societies, banks and credit unions which are all subject to the same Prudential Standards.
The Australian Prudential Regulation Authority (APRA) is the body responsible for prudential supervision - that is the promotion of safety and soundness by these institutions.
APRA provides a consistent approach to the supervision of both banks and building societies including capital adequacy standards.
Capital is the cornerstone of an Approved Deposit Taking Institution's strength. The maintenance of adequate capital reserves can engender confidence in the financial soundness and stability of the institution by providing continued assurance that the ADI will continue to honour its obligations to depositors and creditors.
Australian Securities and Investments Commission:
Another body responsible for protecting account-holders and shareholders is the Australian Securities and Investments Commission (ASIC).
ASIC protects consumers from misleading and deceptive conduct, and also regulates matters affecting incorporation, corporate governance and disclosure.
ASIC has also issued Wide Bay Australia with a Financial Services Licence (Number
239686).The Licence is required under the Financial Services Reform Act 2001.
To hold an Australian Financial Services Licence, Wide Bay Australia is required
to meet, on an on-going basis, the following criteria:
- Adequate financial resources for the performance of our activities
skills and experience to provide financial services
- Adequate systems for
training and supervision of our representatives
Australian Stock Exchange Limited:
As a listed company on the Australian Stock Exchange Limited (ASX), we are required to meet strict reporting and disclosure requirements.
Our shares have traded on the ASX since 1994, and have consistently performed strongly.
Quality Lending Portfolio
A significant aspect of Wide Bay's operations is our lending activities.
The majority of our loans have been restricted to residential purposes secured by registered mortgages.
We also have a policy of insuring residential home loans - with a loan to valuation ratio (LVR) of 80% or greater - with lenders mortgage insurance - arranged through an approved and registered lenders mortgage insurance company. This insurance helps protect us against loss in the event of default by a borrower and provides additional comfort to depositors and investors.
We provide on-going disclosure and reporting required by various regulatory bodies.
We also conduct an Annual General Meeting each financial year.
Progressive results are available to depositors through a Half Year Report and details of the full year's activities are available through an Annual Report.
These Reports include information on our activities, statements by the Directors in relation to our performance, and a Report by an external independent auditor.
We are always pleased to assist you with your queries and provide further information.