Mutual Bank Discussion
May 2013Share This Story
In 2010 the Federal Government launched the Competitive and Sustainable Banking System. In Stream Two (Support Smaller Lenders to Compete with the Big Banks) of the Program it declared its intentions to ‘Build a new pillar in the banking system by supporting the mutual sector’ and also stated that there were more than 20 credit unions and building societies that met APRA's authorisation guidelines on the minimum capital requirements for use of the term 'bank'. If these institutions apply to use the word 'bank', APRA has advised that it will approve them quickly.
Community CPS is currently in discussions with APRA regarding a transition to a mutual bank designation in the latter part of this calendar year. Under this approach the principle of mutuality will continue to be maintained, which means the mutual bank will be owned by each of the members who are its customers. A transition to a mutual bank designation would also see all Community CPS brands aligned under one brand.
The transition to mutual bank designation would see no change to the organisation’s commitment to servicing its members. The move would enable Community CPS to broaden its reach in the market.