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Federal Government Deposit Guarantee
3 November 2008
Rabobank Australia Limited, the issuer of Rabobank deposits, RaboPlus and their products, is an ADI ("authorised deposit-taking institution") which is prudentially regulated by the
Australian Prudential Regulation Authority. It is subject to the Banking Act and, as a result,
its depositors’ claims would rank ahead of all other liabilities of Rabobank Australia Limited.
Below is a link to the section of the APRA website which deals with the subject of depositor
protection:
http://www.rba.gov.au/FinancialSystemStability/AustralianRegulatoryFramework/apra.html
Rabobank Australia Limited, is an Australian bank and is covered by the Australian Federal
Government guarantee of deposits. The Government guarantee was originally announced for a period of 3 years from 12 October 2008.
On 24 October 2008, the Treasurer announced further design and operational parameters for the Government's deposit guarantee. The Government has decided that a threshold of $1 million be implemented. For deposits over this amount, institutions will be charged a fee to receive the benefits of the deposit guarantee.
A different fee will apply to each Authorised Deposit-taking Institution (ADI) based on their
credit rating. Each ADI must decide whether or not it will pay the fee in order to apply the
guarantee to deposits over the $1 million threshold.
The changes to the guarantee scheme start on 28 November 2008.
We will let you know more on this as soon as possible.
Read more about the Government's guarantee of deposits scheme
http://www.treasury.gov.au/contentitem.asp?NavId=017&ContentID=1431
With or without the government guarantee scheme, all deposits with Rabobank or Raboplus
are guaranteed by our ultimate parent, Rabobank, which has maintained a AAA* rating
consistently for the last 27 years from both Standard & Poor's and Moody's. Rabobank has
also been awarded the world's safest non-government bank for 10 consecutive years by
Global Finance magazine (1999-2008).
FAQ
Rabobank retail deposits and RaboPlus deposits covered by the Federal Government Deposit Guarantee?
Yes. Rabobank Australia Limited, the issuer of Rabobank retail deposits and RaboPlus
deposits, is an Australian bank and is covered by the Australian Federal Government
guarantee of deposits.
Further details about the coverage of the guarantee can be found in the announcement made by the Australian Federal Government Treasury.
Rabobank Australia Limited, which issues Rabobank retail deposits and RaboPlus deposits, is prudentially regulated by the Australian Prudential Regulation Authority (APRA).
The liabilities of Rabobank Australia Limited are guaranteed by the bank's ultimate Dutch
parent, AAA rated Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A (known as
Rabobank or Rabobank Nederland).
How safe is Rabobank?
Rabobank Australia Limited's ultimate parent (Rabobank) has maintained an AAA rating
from Standard & Poor's and Moody's for the last twenty seven years. Rabobank Australia
Limited is the only Authorised Deposit-taking Institution in Australia with a AAA* rating
from Standard & Poor's.
Rabobank is performing well during the current credit crisis and only recently reported
interim results for 2008 which showed a 12% increase in pre-tax profits and a Tier 1 capital
ratio of 11.2% which provides strong support for its AAA rating. In fact, Rabobank's Tier 1
capital ratio places it among the world's fifteen largest financial institutions.
Read more information in the Investor Relations section of Rabobank's international website.
Contact
For further information please contact Carlos Vieco, Finance Manager Deposits (Tel: 61 2 8115-4255) or email on carlos.vieco@rabobank.com
* Rabobank Australia Limited has a AAA rating from Standard & Poor’s. Ratings are subject to change. For the latest ratings information please visit www.standardandpoors.com. Ratings issued by Standard & Poor's (Australia) Pty Ltd are solely statements of opinion and not statements of fact or recommendations to make any investment decisions.
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