Security
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 deposits
On 12th October 2008, the Prime Minister announced that the Australian Government now guarantees deposits held at Wide Bay Australia Ltd up until 12 October 2011. Deposits over $1 million are guaranteed subject to qualifying criteria to be imposed by the Government from 28 November 2008.
Wide Bay Australia welcomes this move which will provide further reassurance to our customers that their deposits are secure.
In the move, the Australian Government guaranteed deposits held at Australian banks, building societies (such as Wide Bay Australia) and credit unions and Australian subsidiaries of foreign-owned banks.
The guarantee is legislated as part of the Financial Claims Scheme (FCS) for three years commencing 12 October 2008. At the end of the three-year period, the Government will review the guarantee.
Deposits covered:
The guarantee applies to all deposits held in Australian-owned banks, Australian subsidiaries of foreign-owned banks, building societies and credit unions. (These institutions are authorised to accept deposits by APRA - and are known as Authorised Deposit Taking Institutions (ADI's) and are subject to prudential regulation to protect the safety of these deposits. We all operate under similar standards including minimum liquidity and capital reserves.)
The guarantee applies to all types of deposits, regardless of the type of account through which the deposit is made. For example, it includes savings accounts, passbook accounts, cheque accounts, pensioner deeming accounts, term deposits, mortgage offset-accounts, farm management accounts, first home savers accounts and retirement savings accounts. Both retail and wholesale deposits are covered by the guarantee.
The guarantee applies to deposits held by all types of legal entities in Australia, including individuals (including joint accounts), partnerships, businesses, trusts and government entities.
The guarantee applies to deposits denominated in any currency.
Built on a Strong Foundation
Our history demonstrates a solid record of strength, growth and stability.
Investment Grade Credit Rating
Wide Bay Australia was assigned a long-term credit rating of “BBB-” by ratings agency Standard & Poor’s in November 2005.
“BBB-” is an accepted investment grade credit rating for Australian financial institutions and indicates Standard and Poor’s assessment of Wide Bay Australia’s adequate financial capacity (its creditworthiness) to pay its financial obligations.
The credit rating allows many institutions and organisations who require such a rating under their individual charter to invest in Wide Bay Australia’s range of term and on-call deposits. It also provides additional confidence to all Wide Bay Australia investors.
Wide Bay Australia’s achievement of a Standard and Poor’s investment grade rating is only the third such rating given to an Australian building society or credit union - with Standard & Poor’s recognising Wide Bay Australia’s strong performance over previous years; the strength of our lending and asset quality; our funding and liquidity position and lack of losses.
Supervision and Regulation
Australian Prudential Regulation Authority:
We are supervised by the Australian Prudential Regulation Authority (APRA) - as are other building societies, banks and credit unions.
APRA is 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 Ausralia 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
- Competence,
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 75% 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.
Disclosure
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.
