Organization : Australian Government
Scheme Name : Guarantee Scheme For Large Deposits & Wholesale Funding
Country: Australia
Website : http://www.guaranteescheme.gov.au/
Guarantee Scheme For Large Deposits & Wholesale Funding :
The Australian Government Guarantee Scheme for Large Deposits and Wholesale Funding (the Guarantee Scheme) was announced by the Government on 12 October 2008 and formally commenced on 28 November 2008. The Guarantee Scheme closed for new liabilities at the end of March 2010.
Related : NEIS New Enterprise Incentive Scheme Australia : www.statusin.org/11159.html
The arrangements were designed to promote financial system stability in Australia, by supporting confidence and assisting eligible authorised deposit-taking institutions (ADIs) to continue to access funding at a time of considerable turbulence. They were also designed to ensure that Australian institutions were not placed at a disadvantage compared to their international competitors that could access similar government guarantees on bank debt.
Given the improvement in funding conditions, and the recent or imminent closure of guarantee schemes in a number of countries, the Government announced that the Guarantee Scheme would close to new liabilities from 31 March 2010. The formal notice of the closure of the Guarantee Scheme was provided in the Notice of Final Application Date and Final Issuance Date document.
Large deposits and wholesale liabilities guaranteed under the Scheme as at 31 March 2010 will remain guaranteed, for a fee, for the relevant term. Separate arrangements will continue to apply for deposit balances totalling up to and including $1 million per customer per institution and changing to $250,000 from 1 February 2012. Such deposits are guaranteed without charge.
The closure of the Guarantee Scheme has been reflected in the Scheme Rules after a short consultation period with industry representatives to facilitate a smooth exit. Further information on the changes announced on 7 February is set out in the Q&A. General information on the guarantee is in the Deed of Guarantee. Information for institutions on eligibility and reporting arrangements is in the Scheme Rules and Reporting Requirements.
Applications for Eligibility Certificates, the Final Application Date and the Final Issuance Date:
An Eligible Institution shall be entitled:
a. until 5.00 pm on the Final Application Date, to apply for an Eligibility Certificate in respect of an Eligible Scheme Liability;
b. until 5.00 pm on the Final Issuance Date, to issue Guaranteed Liabilities.
The Guarantor shall provide Eligible Institutions with no less than twenty Business Days notice in writing of the Final Application Date and the Final Issuance Date. The Final Application Date must precede the Final Issuance Date.
The Guarantor may extend the Final Application Date and/or the Final Issuance Date at any time at its discretion by notice in writing to the Eligible Institutions.
An Application must be made in the form of Schedule 2, signed on behalf of the Eligible Institution and delivered to the Scheme Administrator.
An Application which is incomplete or incorrect, including where APRA has notified the Scheme Administrator that the letter of prudential compliance provided in accordance with Schedule 2 B.9 is incomplete or incorrect, will be treated as not having been made and the Scheme Administrator will notify the Applicant accordingly.
Issue of Eligibility Certificate and Issuance of Guaranteed Liability:
1. The decision to issue an Eligibility Certificate shall be at the discretion of the Guarantor.
2. No Eligibility Certificate in respect of an Eligible Scheme Liability will be issued unless, prior to the issue, the Applicant has duly delivered to the Scheme Administrator an Application in accordance with Rule 3.
3. An Eligibility Certificate shall be substantially in the form of Schedule 4.
4. The Eligible Institution must not issue an Eligible Scheme Liability, in respect of which an Eligibility Certificate has been issued, which differs in any material respect from the particulars of the Eligible Scheme Liability specified in the relevant Eligibility Certificate.
5. The Eligible Institution must not issue an Eligible Scheme Liability, in respect of which an Eligibility Certificate has been issued, after the Final Issuance Date.